Insource to absorb wholly owned subsidiary Insource Marketing Design

Insource Co., Ltd. announced its resolution to absorb its wholly owned subsidiary, Insource Marketing Design Corporation (IMD), through an absorption-type merger, with an effective date of January 1, 2026. The merger aims to accelerate business, promote efficient group-wide resource allocation, and unify web and migration businesses under Insource. As Insource is the surviving entity and IMD will be dissolved, there will be no allotment of shares or other financial consideration due to this transaction.

Both companies share Takayuki Funahashi as their representative director. The merger will proceed under simplified and short-form merger rules, negating the need for shareholder general meeting approvals for either Insource or IMD. Post-merger, Insource's company name, representative, business, head office location, capital stock, and fiscal year-end will remain unchanged.

Insource, with net sales of yen 12,474 million in FY23 (consolidated), will integrate IMD, which reported net sales of yen 282 million (non-consolidated) for the same period. The impact of this merger on Insource's consolidated results is expected to be limited.