EL33TONLINE: News tag archive: merger

After the merger of Japanese game development companies Koei (Dynasty Warriors) and Tecmo (Ninja Gaiden, Dead or Alive) was approved by shareholders late January this year, the deal is now complete, and a new joint holding company, Koei Tecmo Holdings, has been formed.

In Japan, April 1st marks the beginning of the new financial year, so this date was chosen as the day the holding company would become official. The company has also revealed its new corporate logo.

Looks good.

The merger is said to be worth $207 million, with expected revenues to reach $727 million, with profits of $166.2 million, by the end of the fiscal year 2012.

The merger between Koei (Dynasty Warriors) and Tecmo (Ninja Gaiden, Dead or Alive), announced earlier this year, has had some further light shed on the exact terms of the agreement.

The holy (or unholy) union between the two highly regarded Japanese developers will be worth $207 million and will result in the formation of a holding company, with official operation of this company beginning in April 2009.

Performance expectations are pretty high, with expected sales revenues to reach $727 million, on profits of $166.2 million by the end of the fiscal year March 2012. This can be compared to current figures for Koei and Tecmo, with operating profits at $88.3 million and sales of $427.9 million for both companies combined.

The merger, news of which came after Square Enix made a move for Tecmo, aims to give both companies a much needed boost in corporate value, against a slowly deteriorating Japanese development industry.