Polaris to acquire Japan's O-Net from Rakuten

O-net, founded in 1980 and acquired by Rakuten in 2007, is one of Japan’s largest matchmaking services. The site positions itself as a service for clients who are serious about finding a spouse, rather than a casual dating relationship. Members pay up to JPY106,000 ($930) and submit a detailed personal profile including dating and marriage history, which O-net uses to identify potential matches.

In addition to automated data matching, O-net also offers regular parties and events where users can meet each other in parson, or personalized consultant services to help clients narrow down their choices. O-net members also have a dedicated page on the Rakuten Wedding site, through which they can access recommendations for wedding venues and discounts for services related to their wedding and reception.

In a filing, Rakuten said it will book a JPY25 billion gain in the fourth quarter of 2018 as a result of the transaction, which is expected to conclude by the end of December. The sale is intended to re-establish O-net as an independent brand so it can take advantage of new growth opportunities.

Polaris is currently investing its fourth fund, which closed in 2017 at JPY75 billion. The fund invests in mid-cap companies that are not realizing their growth potential due to legacy constraints and aims to introduce initiatives aimed at revitalization.

Corporate carve-outs have featured significantly in the fund, with previous deals including the purchases of Fujitsu’s mobile services business and a soft drink division of Asahi. Japanese corporates have shown a growing willingness in recent years to divest non-core assets and focus on their primary competencies, creating new buyout opportunities for private equity firms.

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• Topics
• North Asia
• Technology
• Consumer
• Buyouts
• Japan
• Polaris Capital
• Rakuten
• TMT