iRiver Limited (KOSDAQ:A060570) agreed to acquire S.M. Life Design Company Japan Inc. from S.M. Entertainment Japan, Co., Ltd. for KRW 30 billion on July 17, 2017. Under the terms of the transaction, iRiver Limited will acquire 1 million shares of S.M. Life Design Company Japan Inc. The transaction payment is scheduled on September 1, 2017. In a related transaction, iRiver Limited signed a merger contract to acquire Sm Mobile Communications Co., Ltd from SK Telecom Co., Ltd. (KOSE:A017670) and S.M. Entertainment Co., Ltd. (KOSDAQ:A041510) on July 17, 2017. Post-acquisition, S.M. Life Design Company Japan Inc. will operate as a wholly-owned subsidiary of iRiver Limited. For the year ended December 31, 2016, S.M. Life Design Company Japan Inc. reported total revenues of KRW 11.48 billion, total assets of KRW 11.11 billion, net income of KRW 29.18 million. The transaction is subject to the approval of the shareholders of both companies on the merger of SM Mobile Communications Co., Ltd. The transaction is expected to complete on September 1, 2017. Ernst & Young Han Young acted as an external rating institution in the transaction.