USEN-NEXT holdings to acquire XING to expand karaoke market reach

USEN-NEXT Holdings announced a board decision on December 24, 2025, to acquire 70% of XING Inc. from Brother Industries, Ltd., making XING a consolidated subsidiary. The acquisition, valued at JPY 17,500 million for common stock and an estimated JPY 250 million for advisory fees, totaling JPY 17,750 million, is expected to close on April 1, 2026. This strategic move aims to leverage XING's "JOYSOUND" karaoke brand and technology with U-NEXT's content distribution and customer base.

The acquisition is anticipated to generate significant synergies, including expanding U-NEXT's content with XING's 420,000 karaoke songs and enhancing services at XING's nationwide karaoke locations with U-NEXT's licensed content. It will also open new karaoke markets by cross-selling to U-NEXT's hotel, ryokan, restaurant, and healthcare customer base. USEN-NEXT plans to deepen cross-selling of its music distribution, telecommunications, and cashless payment solutions to XING's strong night economy customer base.

XING Inc., headquartered in Nagoya, reported total assets of JPY 25,528 million and revenue of JPY 27,708 million for the fiscal year ended March 31, 2025. Brother Industries, Ltd., the seller, had consolidated total equity of JPY 691,472 million and total assets of JPY 932,650 million as of March 31, 2025.