SoftBank restructures data center and cloud businesses with subsidiary IDC Frontier

SoftBank Corp. announced absorption-type splits with its wholly owned subsidiary, IDC Frontier Inc. (IDCF), effective April 1, 2026. This restructuring involves two splits. Split (i) transfers IDCF's data center business and related customer contracts to SoftBank. Split (ii) transfers SoftBank's "White Cloud ASPIRE" and "White Cloud Desktop Service Standard" cloud services to IDCF.

These simplified absorption-type splits aim to consolidate engineering resources, unify AI data center development and operation, and strengthen cloud services to support SoftBank's long-term vision of providing next-generation social infrastructure.

For the fiscal year ended March 31, 2025, the data center business in Split (i) generated revenue of JPY 16,552m (excluding sales to SoftBank), with total assets of JPY 10,703m. The cloud services department in Split (ii) generated revenue of JPY 3,619m, with total assets of JPY 2,226m. As IDCF is a wholly owned subsidiary, no shares or cash will be allotted.

SoftBank forecasts consolidated results for the fiscal year ending March 31, 2026, including revenue of JPY 6,700,000m, operating income of JPY 1,000,000m, and net income attributable to owners of JPY 540,000m. The company expects the splits to have an immaterial effect on its consolidated results of operations.