Carlyle buys Japanese software group WingArc1st

The deal will leverage Carlyle's information technology network to expand the WingArc1st's existing businesses and further develop its cloud-based services, according to an announcement. Financial details of the investment were not disclosed, but a filing by WingArc1st last year tracked the company's annual consolidated profit at JPY3.6 billion ($31.3 million) with consolidated net sales at JPY13.4 billion ($118.1 million).

Carlyle will acquire the company from CEO Hiroyuki Uchino and Orix Corp. subsidiary OPI2002 Investment Fund through the Carlyle Japan Partners III buyout fund, which closed last year at just under $1 billion.

"We highly value the leadership of the management team led by Mr. Hiroyuki Uchino, the company's strong position in the Japanese software market and its growth potential," Kazhuhiro Yamada, managing director with Carlyle Japan, said. "Carlyle is fully committed to offering our global network and industry insights in supporting WingArc1st to become the best solution services provider in the cloud computing era."

WingArc1st software is aimed at helping commercial customers make effective use of internal data. It is putting an increasing focus on penetrating the Japanese cloud computing market and recently introduced cloud-based services for existing products, including EOM software known as SVF and the BI service, MotionBoard. "As cloud computing becomes more pervasive, it will transform the way Japanese enterprises develop and operate information systems," Uchino said.

For Carlyle, the buyout comes days after an investment in Japan's biggest bean sprout manufacturer, GGC Group. Fund III's first acquisition was a controlling stake in Oyatsu, the maker of Baby-Star ramen snacks, founded in 1959. This was followed by the purchase of Sunsho Pharmaceutical, a leading domestic producer of soft capsules and seamless capsules for the health and nutrition pharmaceuticals industry.

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• Topics
• North Asia
• Technology
• Expansion
• The Carlyle Group
• Japan