Tender Offer for shares of VeriServe Corp and JIEC Co by SCSK Corp.

SCSK, a global IT service company and Sumitomo subsidiary, resolved to acquire shares of listed subsidiaries VeriServe and JIEC Co, through tender offers pursuant to the Financial Instruments and Exchange Act with the aim of converting these companies into wholly owned subsidiaries. SCSK holds currently 69.52% of JIEC and 55.59% of VeriServe. Aggregate tender offer price is JPY15.5bn for VeriServe shares and JPY5.75bn for JIEC; JPY21.75bn ($194.5m) in total. The domestic IT service market, in which the SCSK Group operates, is expected to continue to experience gradual growth. At the same time, however, a rapid digital transformation trend is permeating the market, driven by the ever more sophisticated and diverse needs of customers and the introduction of Internet of Things, FinTech, artificial intelligence, and other new technologies. SCSK remains committed to transforming business structures in reflection of future operating environment changes in order to improve our Group’s competitiveness and achieve sustainable growth from a medium- to long-term perspective.