Sojitz Advances into Data Center Operation Segment
Investment in Industry Leader to Become Top Shareholder
Jan. 25, 2008
On December 27, 2007, Sojitz Corporation signed a basic agreement with data center operations company SAKURA Internet Inc. concerning a strategic capital alliance. Concrete terms have been discussed between the two parties, and it has been agreed that the capital alliance will be formed on January 25, 2008. Sojitz will acquire new shares of SAKURA Internet through their third-party allocation of new shares, which is scheduled to take place on February 13.
12,718 new shares of the company's common stock, priced at ¥78,628 per share, will be acquired by Sojitz, for a total acquisition cost of ¥999.99 million. After issuance of the new shares, the number of the company's total shares outstanding will change to 44,988. Sojitz will become the top shareholder with a 28.3% stake in the company, and SAKURA Internet will be an equity-method affiliate of Sojitz. Furthermore, Sojitz will send a corporate officer to SAKURA Internet and will participate in the management of the company. By so doing, Sojitz will not only strengthen financial position of the company, but will also try to achieve continuous growth of the company's data center operations.
Utilizing its broad network as a general trading house, Sojitz will grow new sales channels for the data center operation segment, as well as promoting development of high value-added services. In concrete terms, in addition to making its customers available to SAKURA Internet, Sojitz plans to expand into various IT services, such as ASP (Application Service Provider) and SaaS (Software as a Service), targeting the company's broad customer segments through the utilization of high-capacity backbone lines and the data center operations know-how of SAKURA Internet. Additionally, Sojitz will introduce advanced technologies from overseas, help SAKURA Internet to realize efficient management, and will aggressively pursue enhancement of the company's technological capabilities and product appeal.