Target Information

The NSSK Group, based in Minato, Tokyo, led by Jun Tsusaka (www.nsskjapan.com), has announced its intention to acquire all ordinary shares and share acquisition rights issued by WithUs Co., Ltd. (www.with-us.co.jp), located in Osaka, through an investment limited liability partnership and exempted limited partnership managed or supported by NSSK. This acquisition process will include a public tender offer for the shares of WithUs.

This public tender offer has received endorsements from a special committee set up to evaluate the proposal and approval from the Board of Directors of WithUs, along with full support from the management team.

Industry Overview in Japan

In Japan, the education sector is characterized by a mix of traditional methods and modern innovations. Companies involved in the educational services industry are increasingly adopting technology-driven solutions to enhance their offerings. This includes a notable rise in online learning platforms and tutoring services that cater to a diverse range of learners.

The landscape is shaped by a strong demand for supplemental education, especially in urban areas where competition for academic success is intense. Educational institutions such as WithUs are well-positioned to grow in this market by providing comprehensive educational services, including high school operations and tutoring services.

Furthermore, there is a growing emphasis on employability skills and holistic student development, which presents opportunities for education providers to diversify their services and incorporate value-added programs. Institutions are increasingly focusing on capabilities that promote the creation of socially active individuals, which aligns with the corporate vision of companies like WithUs.

As the regulatory framework evolves and institutions adapt to the changing needs of students and parents, educational organizations must remain agile and innovative to compete effectively. The rising awareness of corporate social responsibility also drives educational entities to implement sustainable practices within their operational frameworks.

Rationale Behind the Deal

The acquisition of WithUs aligns with NSSK's strategic goal of enhancing corporate growth within the Japanese education sector. By leveraging its established NSSK Value-Up Program (NVP®), NSSK aims to provide operational guidance that enhances management efficiency and academic effectiveness within WithUs.

Moreover, NSSK's investment is intended to facilitate the implementation of comprehensive management strategies, improved governance structures, and compliance systems that will elevate WithUs's competitive edge in the education market.

Investor Information

NSSK was founded in November 2014 to support Japanese companies in improving their operations, with a focus on modern management practices such as operational improvement, human resource development, and financial efficiency enhancements. The organization has developed several specialized programs, including the NSSK Globalization Program, which utilizes global insights and networks to promote business growth.

With a robust team comprising members with extensive investment experience in the education sector, NSSK is well-equipped to manage and optimize high-potential companies. Previous successes within the education industry, such as the significant growth of subsidiaries, underscore NSSK's capability to drive operational enhancements and strategic acquisitions effectively.

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The acquisition of WithUs by NSSK presents a potentially beneficial investment opportunity, considering the strong foundational business upon which WithUs operates. With its extensive experience in the education sector and proven track record of success, NSSK seems poised to facilitate WithUs's growth in a competitive environment.

By applying NVP® methodologies, NSSK can help WithUs strengthen its management practices, optimize its educational offerings, and expand its market reach. This investment could lead to substantial value creation over time, particularly as educational demands continue to evolve due to changes in societal needs and technological advancements.

Moreover, with NSSK acting as a supportive partner rather than a direct operator, the existing management team at WithUs will retain control, ensuring continuity in operations and strategic direction. This collaborative approach can create a harmonious evolution for WithUs, allowing it to thrive while benefiting from expert guidance.

In conclusion, this strategic acquisition appears to align well with NSSK's investment philosophy and the projected growth trajectory of the Japanese education sector, making it a favorable opportunity for stakeholders involved.

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