[Genetec] Formation of a Subsidiary of Class Technology and M&A | July 2026

Overview of the M&A

Genetec decided to acquire all shares of Class Technology in July 2026 and establish it as a subsidiary. The acquisition cost is approximately ¥1,915 million, with the transfer scheduled for August 2026. Class Technology provides BOM solutions for manufacturing industries, aiming to contribute to the company's business expansion and profitability enhancement. This acquisition intends to strengthen competitive advantage in the manufacturing digital transformation (DX) area and expand stock-based recurring revenue.

Future Outlook and Impact

This transaction will be recognized as a deemed acquisition date at the end of September 2026 in consolidated accounting, and will be reflected in the earnings for the fiscal year ending March 2027. The acquisition is expected to create synergies with existing businesses, expand the customer base, and integrate engineering resources, potentially leading to increased sales and profit. The specific impact on financial performance is currently under review, but it is regarded as a vital measure within the company's long-term growth strategy.