Leader Electronics to become AI solution company via ACG alliance

Leader Electronics Corporation announced a third-party allotment of 847,000 common shares to ACG Growth No. 1 Investment Limited Partnership at 500 yen per share, totaling 423,500,000 yen. This capital raise, expected by December 25, 2025, aims to fund the expansion of its Video Management Automation (VMA) business, including engineer acquisition and development, marketing activities, and potential M&A initiatives. The company plans to allocate 123 million yen for engineer acquisition and training by December 2027 and 277 million yen for marketing and M&A by December 2027.

This strategic move is expected to transform Leader Electronics from an "electronic measuring instrument manufacturer" into an "AI Solution Company." The alliance leverages ACG's market understanding, network, and M&A expertise in video content production, accelerating Leader Electronics' marketing efforts and enhancing business growth. ACG will become Leader Electronics' largest shareholder, holding a 19.78% voting rights stake.

The company anticipates that the capital alliance will contribute to long-term corporate value improvement. However, operating profit is expected to decrease in the short term due to initial investment, with accelerated profit growth projected from fiscal year 2028 onwards as new businesses are commercialized.