(Updated October 2026. USD figures are converted at USD/JPY = 150 for reference.)
Japan’s information services market continues to grow in revenue. Over the past few years, several major Japanese IT services companies have been taken private by their parent companies: NTT DATA Group, Itochu Techno-Solutions (CTC) and SCSK were all delisted between 2023 and 2026. Outside these parent-subsidiary transactions, IT companies held by corporate groups have moved to private equity funds and to other systems integrators (SIers), and listed SIers have acquired non-listed, owner-run companies in Osaka and other regional cities. Global IT services firms, Accenture and FPT among them, have acquired Japanese companies, while Japanese majors have bought data, AI and industry software businesses overseas.
This article is written for corporate development and international business development teams at foreign companies that see Japan as an acquisition market, a source of partners, or a source of acquirers for their own businesses. It reviews Japan SIer M&A through the market structure, the industry landscape, domestic consolidation, foreign capital in Japanese IT services, Japanese IT services majors’ acquisitions abroad, the industry-specific factors acquirers examine, and the implications for overseas acquirers.
1. Market Structure — Growing Demand and Drivers of Consolidation
Market size
According to the Japan Information Technology Services Industry Association (JISA), the 300 companies responding to its 2025 Basic Survey of the Information Services Industry (fiscal 2024, non-consolidated) reported total revenue of ¥10.67tn (~USD 71bn) and 279,677 employees, with weighted average revenue growth of 5.08% (JISA 2025 Basic Survey of the Information Services Industry). Of the respondents, 73.0% are headquartered in the Tokyo metropolitan area (Saitama, Chiba, Tokyo and Kanagawa) and 27.0% elsewhere.
In government statistics, the Ministry of Economy, Trade and Industry (METI) Current Survey on Selected Service Industries put 2024 revenue of the information services industry at ¥17.92tn (~USD 119bn), up 5.5% year on year. By type of service, custom software accounted for ¥11.04tn (61.6% of the total, up 7.8%), of which systems integration was ¥7.32tn (~USD 49bn, up 9.7%). In the categories alongside custom software, software products declined 4.2% to ¥1.92tn, and system management and operation services rose 3.9% to ¥2.24tn. The METI survey ended with the December 2024 data and was merged into a survey by the Ministry of Internal Affairs and Communications from January 2025, so the series does not connect to later figures.
The broadest government survey, the 2025 Economic Structure Survey (fiscal 2024 results), put information services revenue at ¥43.5tn (~USD 290bn). It splits custom software development into ¥16.88tn earned as prime contractor and ¥4.26tn earned as subcontractor (2025 Economic Structure Survey).
The three surveys differ in the companies they cover and in how they aggregate revenue, so their totals do not match. This article uses the METI survey for the breakdown by type of service, the Economic Structure Survey for the split between prime contractors and subcontractors, and the JISA survey for the mix of customer industries.
Customer segments
The business of an SIer differs by customer industry in the domain knowledge required, project size and contract structure. In M&A, the customer base and domain knowledge a company holds shape both the set of likely acquirers and the way they assess the business.
| Customer industry | Share of JISA respondents’ revenue | Business characteristics (as seen in the cases in this article) |
|---|---|---|
| Finance | 22.8% | Core banking, capital markets (bonds and derivatives) and shared systems for regional banks. Engineers with domain knowledge are a precondition for projects. See Cases 7 and 8 |
| Manufacturing | 20.5% | Sales and production management, CAD/CAM/CAE, AI visual inspection and material handling, developed around customers’ operations and equipment. See Cases 4 to 7 |
| Services | 15.1% | Diverse customer businesses, including the planning and development of digital products |
| Government and municipalities | 14.7% | Linked to regulatory change and national programs. Municipal systems are migrating to standardized systems |
| Telecommunications | 10.1% | Business systems such as billing and customer management for operators. Overseas, see Case 15 (CSG) |
| Other IT firms | 7.0% | Work subcontracted from other SIers and software companies, part of the multilayer subcontracting structure |
Shares are the main categories of revenue by customer industry in JISA’s 2025 Basic Survey.
Five drivers of consolidation
- Growing demand and constrained engineering capacity — Systems integration revenue grew 9.7% in 2024. User companies also face shortages: in the Information-technology Promotion Agency’s (IPA) DX Trends 2025 survey, 85.1% of Japanese companies said the number of people driving digital transformation was “somewhat insufficient” or “significantly insufficient” (IPA DX Trends 2025). A METI estimate published in 2019 projected a shortfall of IT personnel in 2030 of about 450,000 in its middle scenario and about 790,000 in its high scenario. In the cases in this article, many acquirers cite securing engineers and specialist personnel as a reason for the acquisition (Section 6).
- Multilayer subcontracting and tighter regulation — In the Economic Structure Survey, about 20% of custom software development revenue (¥4.26tn) is earned as subcontractor. JISA respondents’ outsourcing costs averaged 33.54% of revenue on a weighted basis. In its DX Report 2 (2020), METI described a multilayer subcontracting structure in which large vendors take on work from user companies and subcontract part of it to other developers. In a 2022 survey of subcontracting in the software industry, the Japan Fair Trade Commission (JFTC) called on the industry as a whole to streamline its supply chains. On January 1, 2026, the amended Subcontract Act (now the Act on Ensuring Fair Transactions with Small and Medium-Sized Entrusted Businesses) took effect. For transactions including the subcontracting of software development, it prohibits unilateral pricing without consultation and payment by promissory note (JFTC leaflet on the amended act).
- Capital restructuring of the large groups and sales of group companies — Parent companies have taken their listed SIer subsidiaries private. Itochu tendered for CTC (announced 2023; delisted December 2023), NTT for NTT DATA Group (announced May 2025; delisted September 2025), and Sumitomo Corporation for SCSK (announced October 2025; delisted March 2026). Fujisoft took its four listed subsidiaries private through tender offers in 2023, and TIS merged with its group company INTEC on July 1, 2026, changing its name to TISI. NTT and Sumitomo cited the elimination of conflicts of interest inherent in parent-subsidiary listings, faster decision-making and the acceleration of growth investment. These are intra-group transactions, and this article does not count them as consolidation cases. At the same time, other parent companies have sold group IT companies to outside buyers, citing factors such as a lack of synergies with their core business (Cases 9 and 11, and Yumemi in Case 8). Parent companies are both absorbing and divesting their group IT companies.
- Expansion into data and AI, upstream work and managed services — Acquirers in the cases below cite data-driven transformation (SI&C in Case 8), the combination of network infrastructure and applications (Case 2), and AI talent development (Aidemy in Case 8) as reasons for their acquisitions. In upstream consulting, NSD made consulting firm Trigger a subsidiary in 2022, and SHIFT acquired 32.53% of Rise Consulting Group in 2025, citing the combination of upstream consulting with its own delivery capacity. Japanese majors have also acquired data and AI companies overseas (Case 14). Alongside adding delivery headcount, acquirers are buying companies that widen the range of services they can offer.
- Business succession — In Tokyo Shoko Research’s (TSR) 2025 survey, the share of companies without a designated successor was 62.60% overall and 77.06% in the information and communications sector, the highest of the 10 sectors covered. That sector also includes broadcasting, telecommunications and internet-related services, and in the same survey the rate varies sharply by the representative’s age, from 97.01% for representatives under 30 to 32.01% for those in their 70s. The sector figure alone does not describe the succession position of owner-run SIers. Japan’s Small and Medium Enterprise Agency notes that the share of companies without a successor has been declining and that business succession has made some progress (SME Agency, Current Analysis of Business Succession and M&A). In the SIer industry, companies with most of their shares held by individuals have been sold to listed SIers (Cases 4, 5 and 7). The disclosures in these cases state the acquirers’ reasons, and do not show whether the sellers cited succession.
2. Industry Landscape
Japan’s IT services majors
| Company | Consolidated revenue | Listing and ownership |
|---|---|---|
| NTT DATA Group | ¥5,005bn (~USD 33.4bn), FY2026/3 | Delisted September 2025; wholly owned by NTT |
| Fujitsu | ¥3,503bn (~USD 23.4bn), FY2026/3, including Service Solutions ¥2,347bn | TSE Prime |
| NEC | ¥3,583bn (~USD 23.9bn), FY2026/3, including IT Services ¥2,509bn | TSE Prime |
| Hitachi | ¥10,587bn (~USD 70.6bn), FY2026/3, including Digital Systems & Services about ¥2,940bn (~USD 19.6bn) | TSE Prime |
| Itochu Techno-Solutions (CTC) | ¥794bn (~USD 5.3bn), FY2026/3 | Delisted December 2023; wholly owned by Itochu |
| SCSK | ¥780bn (~USD 5.2bn), FY2026/3 | Delisted March 2026; wholly owned by Sumitomo Corporation |
Three of these majors became wholly owned subsidiaries of their parents between 2023 and 2026. Hitachi, NEC, Fujitsu and NTT DATA continue to acquire companies overseas (Section 5).
Listed mid-size and specialist SIers
| Company | Consolidated revenue | Main fields and recent moves |
|---|---|---|
| TISI (formerly TIS) | ¥596bn (~USD 4.0bn), FY2026/3 | Merged with INTEC and changed its name in July 2026. Invested in Vietnam’s NTQ Solution (2024) |
| BIPROGY | ¥434bn (~USD 2.9bn), FY2026/3 | Dai Nippon Printing holds 21.44% (March 2026) |
| NS Solutions (NSSOL) | ¥381bn (~USD 2.5bn), FY2026/3 | Subsidiary of Nippon Steel. Agreed to acquire Infocom in 2025 (Case 11) |
| Dentsu Soken | ¥165bn (~USD 1.1bn), FY2025/12 | Dentsu Group holds 61.8%. Tender offer by an Itochu group company planned (Case 1) |
| DTS | ¥135bn (~USD 901mn), FY2026/3 | Acquired Tohoku Systems Support in Sendai (2024) |
| SHIFT | ¥130bn (~USD 865mn), FY2025/8 | Continues small acquisitions through its subsidiary ALH (Case 7). Invested in Rise Consulting Group (2025) |
| NSD | ¥118bn (~USD 785mn), FY2026/3 | Acquired consulting firm Trigger (2022) and healthcare systems developer Noza (2023) |
| Cresco | ¥65bn (~USD 431mn), FY2026/3 | Acquired Officemation in Nagoya (2026) |
Other listed SIers acquiring non-listed owner-run companies include Core Concept Technologies (TSE Growth), CEC, System Integrator and SOLXYZ (Section 3).
IT companies within corporate groups
Japanese corporate groups in manufacturing, finance and utilities hold IT companies that have run their parents’ information systems. Listed examples include NS Solutions (a Nippon Steel subsidiary), Dentsu Soken (61.8% held by Dentsu Group) and Sakura KCS (Sumitomo Mitsui Banking Corporation 29.02%, SMFL 17.99%, Fujitsu Japan 14.08%, as of June 2026). Non-listed examples include Kobelco Systems (IBM Japan 51%, Kobe Steel 49%), Sumitomo Electric Information Systems (Sumitomo Electric Industries 60%) and Ogis-RI (wholly owned by Osaka Gas).
Ownership of these group IT companies has been changing. Infocom, a former Teijin subsidiary, passed through Blackstone to NS Solutions (Case 11); Dentsu Soken is the subject of a planned tender offer by an Itochu group company (Case 1); Oki Electric Industry sold 65% of two Chinese software development subsidiaries to Vietnam’s FPT (Case 9); and IBM Japan announced in December 2025 that it would make RBITS, a developer of shared systems for regional banks, a wholly owned subsidiary. Information on non-listed group IT companies is limited, and approaching them requires direct contact with parent companies, in Japanese.
Owner-run SIers
Many of Japan’s non-listed SIers and software developers are owner-run, with founders or representatives holding most of the shares. In the cases in this article, Joho System Service (77.9% held by its representative director, Case 4), System Kaihatsu Kenkyusho (80.8% held by one individual shareholder, Case 5) and Officemation (wholly held by one individual, Case 7) were sold to listed SIers. Non-listed companies disclose little information, and identifying them requires research beyond public databases.
Concentration in Kansai
73.0% of JISA respondents are headquartered in the Tokyo area, and listed and non-listed SIers are also headquartered in the Kansai region around Osaka and Kobe. Kansai-based SIers include Japan System Techniques (Osaka head office in Kita-ku, Osaka, alongside a Tokyo head office), ODK Solutions (Chuo-ku, Osaka), Sumitomo Electric Information Systems (Yodogawa-ku, Osaka), NTT DATA Kansai (Kita-ku, Osaka), Sakura KCS (Chuo-ku, Kobe) and Kobelco Systems (Nada-ku, Kobe). In 2024 and 2025, four non-listed SIers headquartered in Osaka City were acquired by listed SIers based in Tokyo and other cities (Cases 4 to 6).
3. Domestic Consolidation — Group Restructuring, Listed-Company Combinations and Owner Exits
Case 1: Itochu group and Dentsu Soken (2026, tender offer planned) — A joint venture in which the parent keeps its stake
In August 2026, VIC, a company 80% owned by Itochu, announced that it plans to launch a tender offer for Dentsu Soken at ¥2,880 per share, targeting early November 2026. Dentsu Group, which holds 61.8% of Dentsu Soken, will not tender its shares and will keep its stake. After the offer, Dentsu Soken is scheduled to be delisted and become a joint venture of Dentsu Group and the Itochu group. A business alliance with CTC, Itochu’s IT services subsidiary, is also planned. As of this article’s publication, the tender offer has not started.
This transaction shows that (i) for a listed SIer within a corporate group, the parent chose to keep its stake and bring in another corporate group as a shareholder rather than sell all of its shares, and (ii) a trading company is investing in a second SIer on the premise of an alliance with its own group SIer.
Case 2: SCSK and Net One Systems (2024–2027) — Combining network infrastructure and applications
In November 2024, SCSK announced a tender offer for Net One Systems, then listed on the TSE Prime Market, at ¥4,500 per share, a premium of 25.91% over the previous day’s close and 42.14% over the six-month average. Net One Systems reported consolidated revenue of ¥205.1bn (~USD 1.37bn) and operating profit of ¥19.5bn for the fiscal year ended March 2024. SCSK acquired 79.69% for about ¥284.9bn (~USD 1.9bn) and made Net One a subsidiary in December 2024. Net One Systems was delisted in March 2025.
SCSK cited the integration of IT infrastructure and application services, with initiatives including cross-selling of network and SCSK services, one-stop infrastructure operations, and expansion into municipal clients. On October 1, 2026, Net One’s managed services business was integrated into SCSK’s operations subsidiary, with a target of ¥230bn (~USD 1.53bn) in group managed services revenue for FY2030 (ending March 2031). Net One Systems is scheduled to be absorbed into SCSK on April 1, 2027.
This transaction shows that (i) an SIer focused on software and integration acquired a listed network infrastructure company to widen its offering, and (ii) the acquirer moved in stages, from making Net One a subsidiary (December 2024) to integrating managed services (October 2026) and a merger (scheduled for April 2027), and set its integration target in revenue terms.
Case 3: Fujitsu and BrainPad (2025–2026) — Acquiring a data analytics company
In October 2025, Fujitsu signed a business integration agreement with BrainPad, a TSE Prime-listed company supporting data analysis and utilization, and announced a tender offer at ¥2,706 per share. BrainPad’s second-largest shareholder Discipline, director and third-largest shareholder Seinosuke Sato, Resona Holdings, chairman Takafumi Takahashi and Itochu agreed to tender a combined 26.37%. BrainPad was delisted in March 2026.
This transaction shows that (i) a Japanese IT services major acquired a data analytics specialist through a business integration, and (ii) major shareholders, management and corporate shareholders agreed in advance to tender their shares.
Case 4: CEC and Joho System Service (2025) — An owner-run company acquired to build a Kansai presence
Joho System Service (Kita-ku, Osaka; founded 1991) is a non-listed developer of custom sales and production management systems and its own software packages. Revenue for the fiscal year ended March 2024 was ¥1.30bn (~USD 8.7mn), with operating profit of ¥71mn, and revenue over the last three fiscal years rose from ¥908mn to ¥1.11bn and ¥1.30bn. Its representative director held 77.9%, with the remainder held by other individuals. TSE Prime-listed CEC resolved to acquire all shares in February 2025 and completed the acquisition on April 1. The price was not disclosed. CEC cited the expansion of its systems development business and the strengthening of its presence in the Kansai region, as part of the M&A acceleration in its medium-term plan.
This transaction shows that (i) a listed SIer headquartered in the Tokyo area acquired an owner-run company, citing the strengthening of its presence in Kansai, and (ii) the target had revenue of about ¥1.3bn and had grown over the last three fiscal years.
Case 5: System Integrator and System Kaihatsu Kenkyusho (2025) — Engineers with domain knowledge
System Kaihatsu Kenkyusho (Chuo-ku, Osaka; founded 1983) is a non-listed company providing software implementation consulting and development. For the year ended December 2023, revenue was ¥247mn (~USD 1.6mn), operating profit ¥37mn and net assets ¥181mn. One individual shareholder held 80.8%, with the rest held by other individuals. TSE Standard-listed System Integrator resolved to acquire the company in January 2025 and made it a wholly owned subsidiary in March. The price was not disclosed. System Integrator cited securing people versed in both IT and production management, and strengthening its business with manufacturers.
This transaction shows that (i) an owner-run company with revenue of about ¥250mn was the target of a listed SIer, and (ii) the acquirer cited securing engineers with manufacturing domain knowledge as its reason.
Case 6: Core Concept Technologies, Pro-X and Digital Design Service (2024) — Two acquisitions on the same day
On April 16, 2024, Core Concept Technologies (CCT), a TSE Growth-listed provider of digital transformation support for manufacturers, announced the acquisition of all shares of two non-listed SIers in Osaka City, completing both on April 19.
- Pro-X (headquartered in Fukushima-ku, Osaka at the time; founded 2003): logistics and commercial distribution systems. Revenue of ¥613mn (~USD 4.1mn), operating profit of ¥58mn and net assets of ¥136mn for the year ended December 2023. The acquisition cost was about ¥431mn (~USD 2.9mn), consisting of ¥400mn for the shares and about ¥31mn in advisory and other fees
- Digital Design Service (headquartered in Kita-ku, Osaka at the time; founded 1998): CAD/CAM/CAE solutions. Revenue of ¥310mn (~USD 2.1mn), operating profit of ¥7mn and net assets of ¥50mn for the year ended July 2023. The acquisition cost was about ¥221mn (~USD 1.5mn), consisting of ¥200mn for the shares and about ¥21mn in fees
In February 2024, CCT had also acquired Pros Cons (Koto-ku, Tokyo; founded 2019), a developer of AI visual inspection systems, for ¥280mn, and it absorbed Pros Cons on April 1, 2026.
This transaction shows that (i) a listed SIer acquired two non-listed Osaka companies in different fields, logistics and manufacturing, on the same day, (ii) companies with revenue of ¥310mn to ¥613mn were acquisition targets, and (iii) the disclosure separated the share consideration from transaction fees.
Case 7: Small acquisitions for specialist fields and regional bases (2024–2026)
In small acquisitions by listed SIers and their group companies, acquirers have stated the target’s specialist field and location as their reasons.
- SOLXYZ and F (June 2024): F (the company’s name; Chuo-ku, Tokyo; founded 2001) develops capital markets systems for financial institutions, with revenue of ¥317mn, operating profit of ¥24mn and net assets of ¥195mn for the year ended March 2024. SOLXYZ acquired it from three shareholders, including the representative director, for about ¥256mn (~USD 1.7mn), citing people well versed in bonds and derivatives. The price is about 1.3 times net assets and about 11 times operating profit (our calculation)
- Cresco and Officemation (February 2026): Officemation (Nagoya; founded 1982) develops control and business systems and systems for municipalities, with revenue of ¥889mn and operating profit of ¥64mn for the year ended January 2025. One individual held all shares. Cresco cited the expansion of its manufacturing segment (material handling) and its presence in Nagoya
- ALH, a SHIFT subsidiary, and Dataway Systems (September 2025): Dataway Systems (Sendai; founded 1994) had revenue of ¥271mn for the year ended December 2024. ALH acquired it from seven individual shareholders for ¥155mn, citing its customer base and recruitment in the Tohoku region
- Sojitz Tech-Innovation and a developer in Oita (November 2025): an IT company within the Sojitz trading group acquired all shares of a company in Oita City (founded 2018; 167 employees) engaged in custom development and its own products, citing closer coordination of its application development and custom development
These transactions show that (i) acquirers stated specialist fields, such as capital markets and manufacturing (material handling), and regional bases outside Tokyo, such as Nagoya and Tohoku, as their reasons, and (ii) in the three transactions with disclosed revenue, the targets had revenue between ¥271mn and ¥889mn.
4. Foreign Capital in Japanese IT Services — Out-In Transactions
Global IT services firms and private equity funds have acquired Japanese SIers and IT services companies of different sizes and ownership structures, from regional owner-run companies to listed companies and businesses carved out of corporate groups. For overseas readers, these transactions are examples of entry into and expansion in Japan.
Case 8: Accenture and CLIMB, Yumemi, SI&C and Aidemy (2024–2025) — A series of acquisitions in Japan
Accenture acquired four Japanese IT companies between 2024 and 2025.
- CLIMB (April 2024): based in Maebashi, Gunma; founded 1989; about 200 engineers. It provides systems integration, infrastructure operations and core banking systems for clients in finance, manufacturing, telecommunications and government. Accenture cited the modernization of systems for financial institutions and the public sector, and investment in talent outside Japan’s major cities
- Yumemi (May 2025): founded 2000; about 400 people; designs and develops digital products for more than 600 clients. TSE Prime-listed Ceres, which held 49.8% of Yumemi and consolidated it as a subsidiary, sold that stake for about ¥3.7bn (~USD 25mn) before price adjustments. Accenture integrated Yumemi into Accenture Song, citing the removal of silos between planning, development and operations and faster time to market
- Aidemy (August 2025): a TSE Growth-listed provider of AI and digital transformation training and AI development. Accenture launched a tender offer at ¥1,450 per share, a premium of 34.14% over the previous day’s close, acquired 94.08% for a total purchase price of about ¥5.57bn (~USD 37mn) from its own funds, and Aidemy was delisted in November 2025. Accenture cited maximizing clients’ talent potential
- SI&C (August 2025): based in Tokyo; founded 1980; about 1,500 people in its group. It provides custom development, cloud, data and AI services to clients in finance, the public sector, manufacturing and distribution. Accenture cited accelerating enterprise-wide, data-driven transformation at Japanese companies
These transactions show that (i) a global IT services firm acquired Japanese companies with 200 to 1,500 people in transactions of different types: a regional non-listed company, a subsidiary of a listed company and a listed company, and (ii) the acquirer stated a distinct rationale for each acquisition: core systems for finance and the public sector, digital products, AI talent development and data-driven transformation.
Case 9: FPT, NAC and Oki Electric’s Chinese subsidiaries (2024–2026) — An Asian IT services firm expanding in Japan
In March 2024, Vietnam’s FPT acquired all shares of Next Advanced Communications (NAC), which has about 300 engineers, in its first acquisition in Japan. FPT set a target of USD 1bn in Japan revenue by 2027, citing Japan’s aging population, the shortage of IT personnel and demand for the renewal of legacy systems. In December 2024, FPT agreed to acquire 65% of two Chinese software development subsidiaries of Oki Electric Industry, completing the transaction in April 2025; Oki retains 35%. Oki positioned the sale within its medium-term plan, which includes the optimization of overseas sites and strategic partnerships. In August 2026, FPT also announced a strategic collaboration with Qsol, a Kyushu Electric Power group company, including an offshore development center in Da Nang, without a capital transaction.
This transaction shows that (i) an Asian IT services firm acquired a company in Japan and expanded its Japanese business, and (ii) a Japanese group transferring its offshore development subsidiaries kept a minority stake.
Case 10: Capgemini and BTC (2023) — Entry through a cloud specialist
In June 2023, Capgemini announced the acquisition of BTC, a Tokyo-based company founded in 2002 with more than 500 employees, focused on cloud and digital transformation. Capgemini positioned the acquisition as a way to strengthen its end-to-end cloud and digital transformation offerings in Japan.
This transaction shows that a European IT services group expanded its presence in Japan by acquiring a domestic company with several hundred employees in a specific technology field.
Case 11: Blackstone, Infocom and NS Solutions (2024–2025) — A fund acquiring a group company and passing its IT business to a Japanese SIer
Infocom, then listed on the TSE Prime Market, had two businesses, online services including e-comics distribution and IT services, and was 57.65% owned by Teijin. In June 2024, Blackstone announced a tender offer for Infocom at ¥6,060 per share. Teijin did not tender; after the squeeze-out, Infocom bought back Teijin’s shares at ¥4,231 per share. Teijin explained that it needed to transform its business portfolio and had been unable to find synergies with Infocom. The sale followed a competitive process, and Infocom was delisted in October 2024. Blackstone cited long-term investment as a private company, its own network, offshore development resources and M&A.
In April 2025, Infocom Holdings, held by Blackstone, agreed to transfer all Infocom shares to NS Solutions. The e-comics subsidiary was first moved under Infocom Holdings, so only the IT services business passed to NS Solutions. The transfer was scheduled for July 1, 2025, and directors from NS Solutions joined Infocom’s board on that date.
This transaction shows that (i) a Japanese industrial group sold a listed IT subsidiary, citing its inability to find synergies with its core business, (ii) a global fund acquired a company with two different businesses and transferred the IT services business to a large Japanese SIer within about a year, and (iii) the final owner of the IT business was itself an SIer within an industrial group.
Case 12: KKR and Fujisoft (2024–2025) — Competing funds for a listed SIer
The take-private of Fujisoft, a TSE Prime-listed SIer, followed a process led by its largest shareholder, investment firm 3D Investment Partners. In August 2024, Fujisoft’s board resolved to support a tender offer by KKR. After the first tender offer (¥8,800 per share, September to November 2024), KKR’s ownership reached 35.00%, and after the second (November 2024 to February 2025, with the price raised from ¥9,451 to ¥9,850), 57.92%. Bain Capital had also made competing proposals, and announced on February 17, 2025 that it would not launch its tender offer. Fujisoft was delisted on May 16, 2025. Since going private, Fujisoft has continued to acquire and partner: it bought all shares of Mobaoku, an online auction service, and set up a cloud ERP joint venture with System Integrator.
This transaction shows that (i) multiple global funds competed to acquire a listed Japanese SIer, (ii) the price was raised through two tender offers and the competing proposals, and (iii) the company has continued to expand through acquisitions and partnerships after going private.
Case 13: Blackstone and TechnoPro; EQT and Mamezou (2025–2026) — Further take-privates by global funds
TechnoPro Holdings provides engineering staffing and IT services, a field adjacent to SIers. In August 2025, Blackstone launched a tender offer at ¥4,870 per share, a premium of 43.70% over the closing price on May 15, 2025, before speculative press reports. The board supported the offer but remained neutral on tendering, noting that the price was below the closing price on the day before the announcement and that the market price reflected speculation about a take-private. The offer followed a multi-round auction; Blackstone acquired 79.95%, and TechnoPro was delisted in December 2025. Blackstone’s stated plans include more than ¥100bn in M&A, more than ¥10bn in AI and digital investment, and offshore delivery through its Indian IT portfolio companies.
In January 2026, a fund managed by EQT announced a tender offer for TSE-listed Mamezou at ¥3,551 per share, a premium of 18.45% over the closing price on November 26, 2025. Its parent, M&I, held 65.94% and did not tender, transferring its shares to the acquirer instead. The stated purpose was to fund investment in Mamezou’s AI robotics business, and Mamezou was delisted in April 2026.
These transactions show that (i) global funds have taken listed Japanese IT services and engineering companies private, through an auction in one case and an agreement with the controlling shareholder in the other, and (ii) Blackstone’s stated plans for TechnoPro include further M&A and offshore delivery.
5. Japanese IT Services Majors Abroad — In-Out Acquisitions and Investments
For overseas companies, Japanese IT services majors and SIers are potential acquirers of their businesses and potential partners. Their transactions show what they buy, on what criteria and, where disclosed, at what price levels.
Case 14: Hitachi, GlobalLogic and synvert (2021 and 2025) — A digital engineering platform and bolt-ons through it
In March 2021, Hitachi announced the acquisition of US-based GlobalLogic, a digital engineering services firm with more than 20,000 employees in 14 countries, from Canada Pension Plan Investment Board, Partners Group and management, at an enterprise value of USD 9.5bn, and completed it in July 2021. Hitachi disclosed an EV/EBITDA multiple of 37.4x for calendar 2021 and 29.4x for calendar 2022. It cited the growth of Lumada, its digital business platform, and a shift into a market growing more than 20% a year through chip-to-cloud digital engineering, and set targets to bring its D/E ratio below 0.5x and debt/EBITDA below 2.0x within several years after recognizing goodwill and intangible assets.
In September 2025, Hitachi announced that GlobalLogic would acquire synvert, a German data and AI consultancy founded in 1991 with more than 550 employees, from Munich-based private equity firm Maxburg. The price was not disclosed, and completion was scheduled within the fiscal year ending March 2026; we have not found an announcement of completion. Hitachi cited talent in data platforms and data governance and a wider footprint in Europe and the Middle East.
This transaction shows that (i) a Japanese major acquired an overseas company in a high-growth field at 37.4x EV/EBITDA (calendar 2021), and (ii) it now uses that company as a platform to acquire fund-owned specialists.
Case 15: NEC and CSG Systems International (2025–2026) — Financial discipline stated in numbers
In October 2025, NEC announced the acquisition of Nasdaq-listed CSG Systems International, a US provider of billing and customer management software for telecommunications operators, for USD 80.70 per share in cash, a premium of 17.38% over the previous day’s close and an enterprise value of about USD 2.9bn (¥438.5bn). CSG’s 2024 revenue was USD 1,197mn. NEC disclosed that the enterprise value represents 10.3x CSG’s 2026 adjusted EBITDA (consensus estimate), that the deal is accretive to non-GAAP EPS by 7.7% before synergies, and that cash ROIC is expected to exceed WACC within five years after completion if synergies are realized. NEC cited the complementarity between the telecom software of its subsidiary Netcracker and CSG’s customer base among US telecommunications and broadband operators. The acquisition was completed on May 15, 2026, and Netcracker leads the integration.
This transaction shows that (i) a Japanese major acquired an overseas listed software company that complements the customer base of an existing business, and (ii) the acquirer disclosed the multiple, the EPS effect and its ROIC expectations in numbers.
Case 16: Fujitsu and GK Software (2023) — A listed company acquired with the founders’ commitment
In March 2023, Fujitsu announced a voluntary tender offer for GK Software, a German listed provider of cloud and point-of-sale solutions for retailers, at EUR 190 per share (equity value of about EUR 432mn), a premium of 34.7% over the three-month volume-weighted average price. The two founders irrevocably committed to tender a combined 40.65%. Fujitsu committed to maintaining the headquarters and the management’s autonomy, and not to enter into a domination agreement for at least two years. Fujitsu acquired 68.03% in May 2023, and cited its Uvance growth strategy and the acceleration of its shift to cloud and SaaS.
This transaction shows that (i) a Japanese major acquired an industry software company with the founders’ commitment to tender, and (ii) the acquirer set the target’s headquarters and management independence as deal terms.
Case 17: NTT DATA, GHL Systems and a series of specialist acquisitions (2023–2026)
In May 2024, NTT DATA announced the acquisition of 58.7% of GHL Systems, a payments company listed in Malaysia (2023 revenue of MYR 460.4mn; more than 900 employees), from its major shareholders, and raised its stake above 90% through a subsequent tender offer. NTT DATA cited the expansion of its payments business and its position in Southeast Asia. NTT DATA has also acquired companies with several hundred to more than 1,000 people that specialize in particular software and cloud platforms, without disclosing prices: Sapphire in the UK (SAP and ServiceNow, 2023), Niveus Solutions in India (Google Cloud, 2024), Alchemy Technology Services in the UK (Guidewire for insurers, 2025), The Cloud People in Norway (ServiceNow, 2025) and WinWire in the US (Microsoft Azure and AI, more than 1,000 people; completed June 2026).
This transaction shows that (i) a Japanese major has combined a larger acquisition with a series of small acquisitions of platform specialists, and (ii) the targets include companies with delivery staff in India and other countries.
Case 18: TIS and NTQ Solution (2024) — A minority investment in an offshore development company
In December 2024, TIS formed a capital and business alliance with NTQ Solution in Hanoi, Vietnam (more than 1,300 engineers and more than 350 clients, including Japanese companies), making it an equity-method affiliate. The stake and amount were not disclosed. TIS cited its target of ¥100bn in consolidated revenue in Southeast Asia in FY2026 (ending March 2027).
This transaction shows that (i) a Japanese listed SIer has built relationships with overseas development companies through minority investments rather than full acquisitions, and (ii) the target is a development company with Japanese clients.
6. Industry-Specific Factors Examined by Acquirers
In Japan SIer M&A, acquirers examine industry-specific factors in addition to financials. Based on the reasons and synergies disclosed by the acquirers in the cases above, these factors fall into three groups.
- Talent and delivery capacity — Not only headcount, but which domain knowledge the engineers hold and where the company can recruit and deliver. The acquirer in Case 5 cited engineers versed in production management; SOLXYZ in Case 7 cited people well versed in bonds and derivatives; ALH cited recruitment in Tohoku; Accenture in Case 8 cited talent outside the major cities; and CEC in Case 4 cited strengthening its presence in Kansai.
- Customers and industries — The industries and mix of customers, and the track record of development in specific industries. Accenture cited the modernization of systems for financial institutions and the public sector in acquiring CLIMB (Case 8); NEC cited CSG’s customer base among US telecommunications and broadband operators (Case 15); and Cresco cited the expansion of its manufacturing segment, material handling (Case 7).
- Technology and service scope — The range of services the company can provide, such as data and AI, cloud platforms, networks, managed services including operations and maintenance, and industry software products. In Case 2, the combination of network infrastructure and applications and the integration of managed services were the objectives; in Case 14, talent in data platforms and data governance; and in Case 17, the expansion of a payments business (GHL Systems).
7. Implications for Overseas Acquirers
Target universe
The targets in the cases above fall into three groups: non-listed companies, many of them owner-run and outside Tokyo (Cases 4 to 7, CLIMB and SI&C in Case 8, and Case 10); IT companies within corporate groups (Cases 1, 9 and 11); and listed SIers and IT services companies (Cases 2, 3, 8, 12 and 13). Identifying non-listed and group targets requires research beyond public databases, and approaching them requires direct contact with owners or parent companies, in Japanese.
Transaction structures
The cases show several structures: full acquisitions from owners (Cases 4, 5 and 7), majority acquisitions in which the seller keeps a minority stake (Oki in Case 9), joint ventures in which the parent keeps its stake (Case 1), tender offers for listed companies with prior commitments from major shareholders (Case 3), take-privates in which a controlling shareholder transfers its stake to the acquirer (Mamezou in Case 13), and two-step transfers through a fund (Case 11). The appropriate structure depends on the intentions of the owner or parent company and on the acquirer’s integration plan.
What sellers emphasize
Corporate sellers explained their decisions in terms of portfolio and synergies: Teijin stated that it needed to transform its portfolio and could not find synergies with Infocom (Case 11), and Oki positioned its sale within the optimization of overseas sites and strategic partnerships (Case 9). In Case 1, Dentsu Group chose to keep its stake and form a joint venture rather than sell all of its shares. The board of a listed target examined the price against the market price: TechnoPro’s board supported the offer but remained neutral on tendering because the offer price was below the market price before the announcement (Case 13). These statements show that corporate sellers framed sales around their portfolio strategy, and that some chose to retain a stake.
8. Syntax Partners
Syntax Partners is a Japan-based M&A advisory firm that acts solely as financial advisor. In any transaction, we advise one side only, either the buyer or the seller. We advise on Japan SIer M&A and IT services transactions, both domestic and cross-border.
Buy-side advisory
For foreign companies considering acquisitions or capital alliances in Japan, we support the full process: mapping targets based on their strategy, including non-listed owner-run companies and businesses within Japanese corporate groups; approaching owners and parent companies directly; negotiation; and execution. We work in Japanese and English, among other languages.
Sell-side advisory
As an advisor that maximizes the interests of sellers and owners, we support Japanese owners and parent companies considering a sale or business succession. The buyer universe we cover includes not only Japanese SIers but also trading-company groups, private equity, and overseas strategic buyers such as global IT services firms. Our transaction support draws on our understanding of the industry, including engineers’ domain knowledge and composition, prime contractor and subcontractor positions, customer industries, and recurring operations and maintenance contracts.
Selected engagements are listed in our Track Record.
We welcome discussions at any stage, from early-stage exploration of acquisitions or partnerships in Japan to live transactions.
This article was prepared by Syntax Partners, Inc. based on public information, including companies’ official announcements and IR materials, and statistics from government agencies and industry associations.