CyberBuzz will invest ¥500 million to simultaneously acquire アースコーポレーション, which supports the furusato tax donation program, and ワンエイト, a regional trading company. Following the acquisitions, both will become wholly owned subsidiaries, providing CyberBuzz with a platform for transactions with local governments and return-gift processing capabilities.
CyberBuzz, listed on the TSE Growth market, announced that it will acquire all shares of アースコーポレーション and ワンエイト, based in Tamana, Kumamoto Prefecture, making them wholly owned subsidiaries. Total stock consideration is ¥500 million, while initial expenditure, including advisory fees, is approximately ¥580 million. An earn-out clause has been established linking additional consideration to EBITDA over the 3 periods from 16 October 2026 to 30 September 2029.
The two target companies reported combined net sales of ¥3.942 billion and operating profit of approximately ¥9.98 million for the fiscal year ended May 2026, both at low levels, but the business plan for the following fiscal year projects operating profit improving to approximately ¥117 million. CyberBuzz aims to develop new markets by acquiring a transaction platform with local governments and capabilities for processing and commercialising regional products, and by applying its operational expertise for local governments.
The targets are アースコーポレーション, which operates a furusato tax donation support business, and ワンエイト, which procures and processes regional agricultural products for use as return gifts and other products. The two companies are considered contractually integrated and are also treated as a single entity in terms of their shareholders and organisation. The transaction is scheduled to be carried out as a bundled acquisition.
The M&A transaction incorporates future earnings improvement as an evaluation factor through the earn-out arrangement. Based on the two companies' combined operating profit plan of approximately ¥117 million for the fiscal year ending May 2027, the ¥500 million stock consideration is expected to represent approximately 4.27 times operating profit, but the total additional consideration has not been determined, and uncertainty remains regarding future achievement.