#Japan #Fukuoka #Ure Net Advertising #SOBA Project #SOBA Framework

Ure net Advertising Group's Strategic Move

Ure net Advertising Group, a prominent player listed on the Tokyo Growth Market under the ticker 9235, has made an exciting announcement regarding its recent move to acquire a majority stake in SOBA Project Co., Ltd. This Kyoto-based company specializing in visual communication technologies has developed the patented SOBA Framework. The decision to acquire SOBA Project follows a board resolution to sign an agreement that will lead to the formation of a subsidiary, marking a significant step in Ure net's strategy to diversify its operations and enhance its service offerings.

Why the Acquisition?

As Ure net Advertising Group looks to merge e-commerce and artificial intelligence technologies, achieving a projected revenue of 10 billion yen has become a focal point. The company believes that diversifying its business and expanding its service areas are crucial for sustained growth. By acquiring SOBA Project, which boasts a homegrown patented platform, Ure net aims to leverage several key benefits. These include:
1. In-house development of live commerce and video customer engagement technologies.
2. First-mover advantage in the domestic market for an AI-driven shopping platform powered by NFT payments and recommendations.
3. Entry into sectors demanding remote healthcare, education, and SaaS solutions.

These three pillars are expected to create new revenue streams, enhancing both cash flow stability and growth potential for Ure net Advertising Group.

About SOBA Project

SOBA Project has its roots in joint research between academia and industry spearheaded from Kyoto University. The company is recognized as a front-runner in the realm of visual communication, having invested around 1 billion yen into R&D for the SOBA Framework, which is supported by an impressive consortium of five prestigious universities and major companies including NTT Comware and Omron. Established in January 2005, SOBA Project has successfully reduced development costs to one-tenth of previous benchmarks while maintaining top-quality audio-visual synchronization.

The company offers a varied array of SaaS solutions targeting web conferencing, online education, live commerce, and remote healthcare. These solutions have been implemented on a large scale. For instance, a major insurance company relies on SOBA's system for online sales, engaging around 40,000 sales staff across the nation. Furthermore, SOBA Project has demonstrated remarkable financial health, recording gross profit margins of 98-99% over the last three fiscal years, alongside a self-capitalization rate exceeding 90%. In 2019, the company received the Innovation Business Award in the business category. In the increasingly competitive Web3 space, SOBA Project has also positioned itself to offer advanced products, including NFT payment options and gas fee prediction services.

By integrating SOBA Project's unique assets, Ure net Advertising Group aims to evolve beyond a mere EC x AI player to a comprehensive EC x AI x Web3 platform, significantly accelerating its growth and enhancing its corporate value.

Synergies with Ure net Advertising Group

The integration of SOBA Project into the Ure net framework will yield multiple synergies. By harnessing patented streaming technology, operational expertise in TikTok Shop, and a solid Web3 and AI payment infrastructure, Ure net plans to:
1. Rapidly commercialize optimized products for live commerce.
2. Launch a next-gen commerce platform that integrates NFT payments and personalized AI.
3. Enter public sectors like remote healthcare, online education, and virtual meetings.
4. Combine traditional consulting income with recurring SaaS subscription revenue to build cash flow stability.

This strategic alignment sets the stage for enhanced operational efficiency and revenue growth in the future.

Outlook and Future Considerations

The anticipated impact of SOBA Project's acquisition on Ure net's consolidated earnings is still being assessed. However, it is projected that from July 2026, SOBA will positively contribute to Ure net's bottom line. Ure net is committed to transparency and will communicate any significant developments regarding this acquisition as they arise.

This acquisition represents a bold initiative that not only expands Ure net's operational scope but sets it on a path toward transformative growth and innovation in the evolving digital landscape.