Cluster Technology, listed on the TSE Standard Market, announced a capital and business alliance with Seiko Epson. Epson is expected to subscribe for new shares, becoming the company’s largest shareholder with 14.91% of the voting rights, and the share price also surged sharply.
Cluster Technology and Seiko Epson announced a capital and business alliance, under which Epson will subscribe for approximately 990,000 new shares at ¥301 per share, for a total of approximately ¥300 million. As a result, Epson will become the largest shareholder, holding 14.91% of the voting rights. The purpose is to jointly develop components related to inkjet printheads and next-generation materials, and to secure a stable, long-term supply of components. Market reaction after the long holiday weekend saw buy orders flood in, and cases were also reported in which trading did not take place because the shares hit the daily price limit and orders were allocated on a pro rata basis.
This is cited as an example of major manufacturers using capital to secure small firms with technologies essential to their products. Domestic M&A transactions reached a record 5,115 in 2025, and data has also been reported showing that listed companies were involved in approximately 30% of these transactions. In addition, the TSE has announced that, from March 2030, it will raise the Growth Market’s listing maintenance requirement to a market capitalization of at least ¥10 billion, making capital alliances a realistic option for small-cap companies that may find it difficult to grow independently.