PLAID,Inc. acquired an unknown stake in Emotion Tech, Inc
September 27, 2021
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PLAID,Inc. (TSE:4165) signed an agreement to acquire an unknown stake in Emotion Tech, Inc. from Yoshimitsu Imanishi, Reiji Iio, Globalway, Inc. (TSE:3936), AT-I Investment Limited Partnership, a fund of STRIVE, Inc., and MIC Innovation III Limited Liability Fund, a fund of Mobile Internet Capital Inc., for ¥1.4 billion on August 27, 2021. As of September 28, 2021 PLAID,Inc. board passed the resolution for loan of ¥2 billion to fund the transaction with Sumitomo Mitsui Banking Corporation. PLAID,Inc. will acquire 0.05 million shares comprising of 0.02 million common shares and 0.04 million Class A Preferred stock of Emotion Tech, Inc. In a related transaction, PLAID,Inc. will carry out a capital increase in 0.01 million Class C Preferred stock of Emotion Tech, Inc. for ¥259 million. Prior to the transaction, PLAID,Inc. held 4.329 Class B Preferred stock and after the transactions, PLAID,Inc. will hold 0.02 million common stock, 0.04 Class A preferred stocks, 4329 Class B preferred stocks and 0.01 million Class C Preferred stocks resulting in 64% voting rights ratio. Globalway, Inc. is selling 1,905 Class A Preferred Stock of Emotion Tech (with a voting rights ratio of 2.00%). The transaction shall be funded through cash and bank borrowings. After the transactions, PLAID,Inc. will hold 64% stake and Emotion Tech, Inc. will operate as a subsidiary of PLAID,Inc. Emotion Tech Inc. reported net assets of ¥85 million, total assets of ¥380 million, net sales of ¥487 million, operating loss of ¥101 million and net loss of ¥102 million for the year ending December 31, 2020. The Board of Directors of PLAID,Inc. passed a resolution for the transaction on August 27, 2021. The transaction is expected to be completed on September 28, 2021. The transaction is expected to result in a valuation gain ¥75 million to PLAID,Inc. As a result of the sale of Globalway of all shares of Emotion Tech to Plaid, the company expects to record a gain on sales of investment securities of approximately ¥49 million as extraordinary income in the consolidated financial statements in the fiscal year ending March 2022. The advisory expenses amounted to ¥21 million.
PLAID,Inc. (TSE:4165) completed the acquisition of an unknown stake in Emotion Tech, Inc. in September 28, 2021.
Plaid Inc is a Japan-based company mainly engaged in the provision of customer experience (CX) platform KARTE to businesses operating websites and smartphone applications in a cloud format. The Company is engaged in the development of the CX platform KARTE. By incorporating KARTE into websites and smartphone applications operated by businesses, businesses collect and analyze data on the behavior of users who visit those websites and smartphone applications, organize and visualize data on a user-by-user basis, and personalize communication via websites, smartphone applications, emails and chats to each user or user segments. The Company is also engaged in the operation of a media called XD to provide information on the Internet.
PLAID,INC. 
