TWOSTONE&Sons is acquiring FAM, a system engineering services provider, to strengthen its talent acquisition and training capabilities in the IT sector in Japan.

Target Company Information

TWOSTONE&Sons (7352), a company specializing in IT engineer support, is set to acquire FAM, a provider of system engineering services based in Shinjuku, Tokyo. This strategic acquisition aims to enhance TWOSTONE&Sons' capability in securing a diverse talent pool of IT engineers. The company considers this move beneficial given the high degree of compatibility between its core operations, which include a matching service for freelance engineers and businesses.

FAM is recognized for its unique expertise in recruiting and training inexperienced engineers. For the fiscal year ending in October 2024, FAM reported revenue of 489 million yen, with an operating profit of 28 million yen and net assets amounting to 480 million yen. This strong financial profile underlines FAM's potential for growth within the industry.

Industry Overview in Japan

The IT services industry in Japan is a rapidly evolving sector, driven by the increasing demand for digital transformation across various industries. As busines

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TWOSTONE&Sons

invested in

FAM

in 2025

in a Buyout deal

Disclosed details

Transaction Size: $13M

Revenue: $4M

EBITDA: $3M

EBIT: $0M

Net Income: $0M

Enterprise Value: $4M

Equity Value: $13M


Multiples

EV/EBITDA: 1.6x

EV/EBIT: 16.0x

EV/Revenue: 0.9x

P/E: 64.8x

P/Revenue: 2.9x

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