SHIFT has acquired the system development business from ESCO Japan, focused on the domestic insurance industry, for 710 million yen to enhance its technology offerings and capitalize on the growing insurance tech market in Japan.

Target Information

SHIFT (Ticker: 3697) has announced its acquisition of the system development business for the domestic insurance industry from ESCO Japan, based in Shinjuku, Tokyo. This strategic move is aimed at expanding SHIFT's service offerings in a growing sector within the tech industry. The acquired business specializes in consulting for the implementation of low-code development platforms, catering primarily to major insurance companies, thereby solidifying SHIFT's position in the insurance technology market.

The target business has demonstrated robust financial performance, registering a revenue of 786 million yen and an operating income of 269 million yen as of the fiscal year ending December 2024. The acquisition price is set at 710 million yen, and the deal is expected to be finalized by February 1, 2026, through the establishment of a new entity called AXIS, formed under SHIFT Growth Capital, also located in Shinjuku.

Industry Overview in Japan

The insurance technology sector in Japan has witnessed significant growth, driven by the increasing demand for digital solutions that enhance operational efficiency across traditional insurance pra