We are pleased to announce that we have resolved at a meeting of the Board of Directors held today that ONTSU Co., Ltd. (Headquarters: Osaka city, Osaka; Representative Director and President: Hideyuki Hamuro; hereinafter referred to as “ONTSU”), which is a group company of GENDA Inc. (Headquarters: Minato-ku, Tokyo; Representative Director, President and CEO: Nao Kataoka; hereinafter collectively referred to as “GENDA” including its group companies), will acquire all outstanding shares of Eisetsu Co., Ltd. (Headquarters: Suita city, Osaka; Representative Director and President: Takeshi Okumura; hereinafter “Eisetsu”), which is engaged in the distribution of karaoke equipment and the operation of karaoke facilities.

GENDA operates karaoke-related businesses as an entertainment platform business, including the operation of karaoke facilities, “Karaoke BanBan,” and the distribution of karaoke equipment, etc. In addition to KAJI Corporation Co., LTD. and ONTSU, which are group companies of GENDA and respectively rank first and second in the industry as a karaoke equipment dealer, Eisetsu will also join GENDA. This will enable GENDA’s karaoke equipment distribution business to solidify its leading position in the industry and build a stable business base, driven by a substantial rise in the number of units handled.

Moreover, relatively newer rental equipment that has completed its service in the day market (stores and premises that are open from the daytime, such as karaoke facilities), such as Karaoke BanBan, can be redistributed as rental equipment in the night market (snack bars, clubs, and other stores and premises mainly open during the nighttime). Although many older karaoke machines are distributed in the night market, we will introduce newer karaoke machines that have just completed their service to the night market for rental, as same as GENDA’s karaoke equipment dealers have been doing. Eisetsu will also aim to increase customer satisfaction and improve the terms of its karaoke equipment rental agreements by revitalizing the age of karaoke equipment in the night market.

GENDA has expanded its business scale by bringing amusement arcade operators and karaoke facility ones into the fold and has successfully grown the profitability of these companies through PMI (Post Merger Integration) such as increasing sales via intra-group synergies and reducing costs by leveraging economies of scale. With the addition of Eisetsu to GENDA’s existing structure as a karaoke equipment dealer, we will see an expansion of our sales area and the mutual complementation of our maintenance networks. Furthermore, we will achieve distribution efficiency, driven by the increase in the total number of karaoke machines handled by the entire group.

In order to realize the Aspiration of “More fun for your days,” GENDA will continue to deliver a diverse range of entertainment experiences.

■ For more details, please refer to this timely disclosure.

■ Eisetsu Corporate outline
Company name: Eisetsu Co., Ltd.
Representative: Representative Director and President Takeshi Okumura
Establishment: November 1984
Location: Suita city, Osaka
Web site: https://eisetsu.com/

■ GENDA Corporate outline
“More fun for your days”
To realize this Aspiration, GENDA is an entertainment company that aims to build a global entertainment network and increase the “total amount of fun” distributed throughout the world.
We operate a wide range of businesses in entertainment, including Amusement, Karaoke, Lifestyle, Tourism, Food & Beverage, Character Merchandising and Contents & Promotions (movies, interactive contents, etc.).
Both domestically and internationally, we operate approximately 1,100 locations, including amusement arcades such as “GiGO,” the karaoke chain “Karaoke BanBan” and the photography studio “Studio CARATT” as well as approximately 14,000 mini-locations (mainly a gaming corner with 30 or fewer game machines installed). We operate in Japan, the United States, mainland China, Hong Kong, Taiwan, the United Kingdom, Vietnam, the Netherlands, Canada and Singapore.

Company name: GENDA Inc.
Representative: Representative Director, President and CEO Nao Kataoka
Established: May 2018
Location: 6F Tokyo Shiodome Building, 1-9-1 Higashi-Shinbashi, Minato-ku, Tokyo
Web site: https://genda.jp/en
GENDA IR page: https://genda.jp/en/ir