That JustSystem, famous for "Ichitaro" and "ATOK", under the umbrella of Keyence, to rebuild management

That JustSystem, famous for Japanese word processing software "Ichitaro" and Japanese conversion software "ATOK", signed a capital and business alliance with KEYENCE Corporation. Justsystems will issue new shares through third-party allocation, and it seems that Keyence will underwrite it for about 4.5 billion yen. In other words, Keyence will become the largest shareholder with 43.96% of JustSystems shares, JustSystem will in fact be under umbrella of Keyence.

For details of how such things became due to the circumstances, how to use 4.5 billion yen, what is the contents of business alliance, etc. from the following.
JustSystems | Announcement on Capital and Business Alliance

[PDF file]We announced "Notice on Issuance of New Shares by Capital / Business Alliance and Third-Party Allotment"

The details of the process up to this tie-up and what to use for funds obtained are detailed in the above PDF file.

First of all in May 2008 we launched company-wide cost reduction projects, promoted cost reduction measures by reviewing substantial expenses such as advertising and advertising expenses, outsourcing expenses, outsourcing costs, etc., to improve operating profit and loss and financial structure, As a result of effective and accurate use of limited costs and full efforts to increase sales, the sales up to the third quarter of the fiscal year ended March 31, 2009 had been at a level that almost attained the initial business plan.

However, orders from enterprises initially anticipated due to the decline in corporate earnings due to the deterioration of the global economic environment since the fall of 2008, curbing capital investment, and weakened consumer spending caused by deteriorating employment conditions, , It seems that it became a hindrance to the recovery of performance.

From the current economic situation, it is difficult for Justsystems' earnings situation to recover quickly, it is considered difficult to newly borrow from financial institutions, and it is judged there is a risk of hindering business continuity. In order to avoid circumstances beforehand, it is essential to strengthen the financial base, it seems that this decision was reached.

The use of the obtained funds looks like the following.

Working capital to continue proactive business activities: 2 billion yen
Improvement of sales structure to improve profit · Marketing expenses such as advertisement expenses: 1.5 billion yen
Repayment of borrowed funds: 1 billion yen

The funds to be used for working capital and marketing, etc. were used in consideration of the future cash flow situation in each term and the situation of business tie-up with Keyence in the future and unforeseen circumstances occurred concerning repayment of borrowing money Based on what is planned to be used in the case, it seems that each planned expenditure is about 3 years.

By the way, there was a collaborative consultation from KEYENCE that evaluated JUST SYSTEM 's technological capabilities and development capabilities, and the two companies said they have discussed the possibility of collaboration.

By concluding a capital and business alliance agreement, we will combine the know-how of Keyence's business management with the management resources such as Justsystem's competitively competitive products, technological capabilities and development capabilities, thereby enhancing growth and corporate value of both companies It seems that improvement is achieved.

As business contents, three directors and one corporate auditor are dispatched from Keyence to JustSystems, and it will be as follows.

Part 1: Introduction of Keyence business model · business know-how to expand JustSystem's software business

Part 2: Development and sale of new products with JustSystem's software technology based on market information of Keyence

By the way, what kind of company is KEYENCE, the following is the official website.


The business contents are as follows.

1. Development, manufacture and sales of FA sensors
2. Development, manufacture and sale of automatic control equipment, measurement equipment, information equipment and related electronic applied equipment, optoelectronic equipment and these systems
3. Development, manufacture and sale of high-tech hobby products

What is going to be about JustSystem's future software ...?

in Note, Posted by darkhorse