To split off IDC Frontier data center ops, effective Apr 1 2026
- The Splits consist of (i) an absorption-type split in which the Company will succeed the data center business of IDC Frontier Inc. (hereinafter “IDCF”), a wholly owned subsidiary of the Company, as well as customer contracts related to its cloud and network services (hereinafter “Split (i)”), and (ii) an absorption-type split in which IDCF will succeed the Company’s cloud services “White Cloud ASPIRE” and “White Cloud Desktop Service Standard” (hereinafter “Split (ii)”).
- With respect to the data center business, its importance as core infrastructure supporting an AI-driven society is increasing. Accordingly, pursuant to the Split (i), this business will be succeeded by the Company and enhanced and advanced as a next-generation business.
- The Split (i) will be an absorption-type split with the Company as the successor company and IDCF as the splitting company. Split (ii) will be an absorption-type split with the Company as the splitting company and IDCF as the successor company.
- Results of operations of the department to be succeeded due to the Split (i) (Fiscal year ended March 31, 2025) Revenue: JPY 16,552 million (excluding sales to the Company)
- Since these are splits between the Company and a wholly owned subsidiary of the Company, the effect of the Splits on the Company's consolidated results of operations is immaterial.