Blackstone, a leading global investment firm based in the United States, has announced its intention to acquire Infocom, a prominent Japanese company specializing in e-comics and information technology services. This acquisition is set to be Blackstone’s largest private-equity deal in Japan to date, highlighting its strategic focus on expanding its footprint in the Japanese market.
The transaction entails Blackstone’s funds launching a tender offer to purchase shares from existing shareholders of Infocom, primarily Teijin, a major Japanese chemical company. Blackstone plans to acquire a substantial 42% stake in Infocom by offering 6,060 yen per share, amounting to approximately 141.39 billion yen (equivalent to around $896.4 million USD). In addition to this stake acquisition, Infocom will utilize financing arranged by Blackstone to buy back the remaining 58% stake held by Teijin. This buyback transaction values Teijin’s shares at 4,231 yen each, totaling about 134.38 billion yen.
The tender offer period is scheduled to commence on June 19 and will run until July 31, providing current shareholders with an opportunity to participate in the sale.
Blackstone’s strategic move into Infocom represents its third significant private-equity investment in Japan over the past six months. This initiative underscores Blackstone’s commitment to investing in high-quality, growth-oriented businesses in Japan and supporting their transformation into market leaders. Atsuhiko Sakamoto, Blackstone’s head of private equity for Japan, emphasized the firm’s strategy of identifying and nurturing businesses with strong growth potential.
Infocom has demonstrated robust financial performance, particularly in its fiscal year ending in March. The company reported a notable 85% increase in net profit, amounting to 6.61 billion yen, driven by a 20% rise in revenue to 84.45 billion yen. A significant portion of Infocom’s profitability stems from its Mecha Comic platform, a leading provider of online comics in Japan known for its popularity among female readers.
The acquisition proposal has received support from Infocom’s board of directors, which has recommended that shareholders accept the tender offer. Prior to the formal announcement, Infocom’s share price saw a 5.1% increase, closing at 6,030 yen, reflecting positive investor sentiment and anticipation surrounding the potential buyout.
Teijin, on its part, has previously indicated its strategic intent to focus on core businesses while exploring options for non-core assets, including its stake in Infocom. This strategic realignment aims to optimize Teijin’s business portfolio, enhance operational efficiency, and maximize shareholder value.
In conclusion, Blackstone’s acquisition of Infocom represents a significant milestone in its strategy to bolster its presence in Japan’s vibrant technology and entertainment sectors. By leveraging Infocom’s strong market position and growth trajectory, Blackstone aims to capitalize on emerging opportunities in Japan’s digital content and information technology landscape, further solidifying its position as a key player in global private equity investments.