The Strategy of Overseas Business
- Acquiring Metaps Entertainment group
2021/3/8
Tokyo Stock Exchange First Section:Code 3676https://www.digitalhearts-hd.com/
Corporate Strategy behind the M&A
Completed building a foundation of developing Enterprise Business as our second earnings pillar.
Take next initiatives as our new growth strategy.
Entertainment Business
Established dominant market shares in domestic Debugging business with growth for years.
⇒ New initiatives of profit reforms in matured market.
Enterprise Business
As a 'Second Founding' period of the company, expanding the Enterprise Business such as System Testing by leveraging our core Debugging's base.
⇒ To be high-growth, high-profit with DX as a tailwind.
Overseas Business
New growth driver in the entertainment field.
⇒ To become the Comprehensive Localization Service provider by acquiring new capability through M&A.
New M&A
The Influence of Chinese-made Game
The Chinese game industry continues to grow rapidly and its influence on the global game market is expanding.
Size of game industry in China Number of game users in China
Approx. 6 Trn yen over 660 Mln people
Sales trend of Chinese-made games in overseas market
(Bln $) 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00
2015
2016
2017
2018
2019
2020
*According to research by 4Gamer.net based on "the 2020 Chinese Game Industry Report" of GPC.
Metaps Entertainment Group :Businesses
DIGITAL HEARTS HOLDINGS will acquire Metaps Entertainment group who provides Chinese game companies with various marketing services for launching game titles in new overseas markets.
Main Business
1
Main Service
・Online advertising (Internet advertising like SNS) ・Offline advertising (TV commercial and billboard) ・Influencer marketing
Main
Business IP Contents businesses 2
Provide Chinese game companies with supporting service entering to markets like Japan, Taiwan, Korea, Southeast Asia, etc.
Business matching related to IP (digital copyrights of games or characters) between Japanese licensors and overseas licensees.
Marketing support services
➢ Strong relationship with some of major Chinese game companies.
➢ Rich experience of TVCM and promotion for various well-known game titles.
➢
Supports a wide range of online and offline media such as SNS, TV, billboards.
➢ The group has approx. 10,000 influencer resources and covers over 1 billion followers.
➢ Cross-border team familiar with the cultures and business practices in China and other Asian markets.
➢ Rich experiences especially in Asian markets like Japan, Taiwan and others.
➢ Flexibly to a wide range of requirements with offices in Tokyo, Shanghai, Taiwan, Hong Kong, and Singapore.
➢ Other Asian markets are covered by its staff with various nationalities such as Indonesia, Thailand, and South Korea.
New Growth of Overseas Business
Aiming to be the Comprehensive Localization Service provider to support Chinese companies' overseas expansion by leveraging strengths of DIGITAL HEARTS group and Metaps Entertainment group.
Target
Chinese game makers
Chinese digital content / service provider
&
Comprehensive localization services
Various professional services of group companies with specialists
01
02
03
Services | Strengths of our group after acquisition and name of service providers |
Translation / LQA | Over 250 translators with rich experience of video game titles Group companies
|
2D/3D graphic development | Over 100 creators and engineers Group company - FLAME Hearts Co., Ltd. (Japan) |
Marketing strategy support | Cross-border team familiar with Asian markets Group companies - Metaps Entertainment Limited and its seven group companies in Asia. |
Advertising / Sales promotion | Own media "4Gamer.net" and strong relations with various media in Asia Group companies - Aetas, Inc. (Japan) - Metaps Entertainment Limited and its seven group companies in Asia |
Online game operation support | Know-how based on rich experience Group companies
|
Abundant multi-national human resources
Multi-national human resources familiar with the culture and business customs of various Asian countries including Japan and China
Aiming to be the Comprehensive Localization Service provider.
Stronger support with deeper local knowledge
➢ Accumulate experience and further investigate each market for deep understanding of local needs.
➢ Contribute to clients' business in target markets with multiple service and rich experience for each.
Further M&AExpansion to U.S. and Europe
➢ Acquire new functions and services in Asia and cover wider digital entertainment areas.
➢ Expand the business and increase market share.
➢ Establish business in rapid growing Asian market.
➢
Develop new businesses foundation and enter to the U.S. and European markets.
Aiming to achieve sales JPY 5.0 Bln of Overseas Business
(ref) Structure of the Acquisition
To purchase 100% share of Metaps Entertainment Limited and to acquire total eight companies as Metaps Entertainment group.
Owns 51% of
100% subsidiary
100% subsidiary
100% subsidiary
shares
100% subsidiary
100% subsidiary
100% subsidiary
Financial results of Metaps Entertainment group (FY2020)
Net Sales
Approx. JPY 2.0 Bln
Acquire 100% share by stock purchasing
Metaps Entertainment Limited
(Holding company)
(ref) Schedule
Date of conclusion of the stock purchase agreement: March 8, 2021 Date of the stock acquisition: March 29, 2021 (Scheduled)
Operating income
Approx. JPY 0.2 Bln
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Hearts United Group Co. Ltd. published this content on 08 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2021 07:02:01 UTC.