TIS to merge with INTEC, forming TISI and targeting significant growth

TIS Inc. announced plans to merge with its wholly-owned subsidiary, INTEC Inc., effective July 1, 2026. The surviving entity, to be renamed TISI Inc., aims to strengthen its management and business foundation, enhance value creation, and optimize capital allocation. The merger is part of TIS's "Group Vision 2032" to achieve sustainable growth and increase corporate value. This is classified as a simplified and short-form merger, meaning no shareholder approval is required for either company.

The merged company, TISI Inc., projects net sales of 588,000 million yen and operating income of 75,000 million yen for the fiscal year ending March 31, 2026. This represents a 2.9% increase in net sales and an 8.6% increase in operating income compared to the previous fiscal year's actual results. The company also aims for net sales of 600 bn yen and operating income of 90 bn yen (15% margin) by fiscal 2033. This strategic move is anticipated to generate business synergies of over 60 bn yen in sales and cost synergies providing over 3 bn yen in operating income impact, alongside a 12 bn yen increase in strategic investments by fiscal 2033.

Immediately post-merger, both companies' existing organizational and human resources systems will temporarily coexist, with full integration planned for April 2027 to coincide with the launch of the next medium-term management plan. TISI Inc. will target a total return ratio of 50%, maintaining continuous enrichment of per-share dividends, and holding treasury shares up to 5% of outstanding shares.