Notice Regarding Acquisition of Shares of Groove Holdings Inc.

Akatsuki Inc. has announced the acquisition of all shares of Groove Holdings Inc. (GHD) for a total estimated cost of 4.668 billion yen, including advisory fees. Through this transaction, GHD and its wholly-owned subsidiary, Groove Direction Inc. (GD), will become consolidated subsidiaries of Akatsuki Inc. The acquisition is scheduled to be finalized on April 30, 2026, following a board resolution passed on April 24, 2026.

The primary objective of this acquisition is to strengthen Akatsuki’s IP development capabilities by integrating GD’s specialized expertise in the entertainment merchandise sector. GD maintains a robust business foundation in the planning and manufacturing of concert and fan club merchandise, characterized by high quality, short delivery times, and strong price competitiveness. By combining these operational strengths with Akatsuki’s existing IP creation, marketing, and community-building experience, the company aims to expand fan touchpoints and capitalize on the growing market for physical merchandise and live event experiences.

The acquisition involves GHD, a holding company established in 2022, and its subsidiary GD, which was formed via a company split in 2024. Financial data for GD indicates consistent performance, with net sales reaching 2.79 billion yen and operating income of 535 million yen for the fiscal year ended November 2025. The transaction is expected to accelerate multi-faceted IP development across the Akatsuki Group, contributing to long-term corporate value. The financial impact of this acquisition on Akatsuki’s consolidated results for the fiscal year ending March 2027 is currently under review.