Notice on Acquisition of Shares of ICS Co., Ltd. (Making It a Wholly Owned Subsidiary)

Overview of the M&A

fonfun corporation has resolved to acquire the shares of ICS Co., Ltd. and make it a wholly owned subsidiary. The acquisition price was determined comprehensively based on ICS's recent performance, future plans, and third-party valuations, and prior to closing, loans receivable from the parent company will be settled. ICS's main businesses are system development and maintenance for communication networks, engineer staffing, and base station construction, and it has established transaction relationships with major carriers. For the fiscal year ending August 2026, sales are projected at 795,655 thousand yen, operating income at 29,341 thousand yen, and net income at 30,769 thousand yen.

Future Impact and Schedule

ICS is scheduled to become a consolidated subsidiary of fonfun corporation from the consolidated accounting period of the third quarter of the fiscal year ending March 2027. The future financial impact is currently being examined, and confirmed information will be disclosed in a timely manner. The share transfer will be executed in cash, and fonfun plans to dispatch directors to ICS after the acquisition. Costs associated with the acquisition, such as integration expenses, are undetermined at this time and will be disclosed once finalized.