Japan's J-Star forms media platform with three acquisitions

The companies include marketing and search engine optimization services provider Kurashino, user behavior analysis specialist Crafta, and 1k, which publishes household financial advice for a general readership as well as lifestyle content targeted at women in their 30s. The investments were made via J-Star’s third fund, which targets companies with valuations of JPY3-10 billion ($28-92 million) with deployments in the range of JPY1-3 billion.

The idea is to launch a platform, to be known as Periplus, that combines the core strengths of the three foundation businesses, including media management and branded content products. As a combined group, Kurashino, Crafta, and 1k rank among Japan’s top media entities in terms of number of viewers and page views, according to a release. AVCJ understands that Periplus will pursue acquisitions not only in pure media or advertising companies but also synergistic e-commerce businesses.

J-Star has used a similar platform-based approach for consolidation plays in various segments, including branded foods, pet care and hospice care. J-Star CEO Greg Hara told AVCJ last year that buy-and-build strategies were particularly effective in Japan due to a need to offset demographics-drive sales declines. “You have to increase revenue and create efficiencies by combining several companies and managing them with a smaller number of people,” he said.

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• Topics
• North Asia
• Buyouts
• Media
• Japan
• J-Star
• M&A