LEIFRAS Co., Ltd. Strengthens Growth Strategy with Strategic M&A in Education Sector

LEIFRAS Co., Ltd. (ticker: LFS), a prominent player in the field of sports and educational support, has announced a significant move in its growth strategy by initiating its first M&A under the banner of its second founding phase. The company, headquartered in Shibuya, Tokyo, plans to acquire four after-school program facilities, known as “Sora & Fune,” managed by Well Resource Corporation in Miyagi Prefecture, starting May 1, 2026.

This strategic move follows LEIFRAS's recent listing on the Nasdaq, which has bolstered its financial credibility and resources, enabling the company to intensively invest in its social business sector. This acquisition not only aims to strengthen the company's competitive edge in the high-barrier developmental therapy market but also to maximize corporate value.

Strategic Significance and Financial Impact of the M&A

1. Immediate Contribution to Revenue and Profitability

The four facilities targeted in this acquisition are highly regarded by community organizations and counseling support services, maintaining nearly a 100% occupancy rate without excessive marketing expenses. This robust operational foundation allows LEIFRAS to bypass the prolonged startup phase and initial losses typically associated with organic growth.

2. Cost Leadership through Acquiring Rare Specialist Personnel

As the after-school service market demands higher quality support from qualified professionals, securing experienced specialists has become a bottleneck across the industry. With this acquisition, LEIFRAS plans to integrate 23 qualified specialists, including physical therapists and occupational therapists, thereby reducing recruitment time and costs while enhancing service quality.

3. Synergetic Expansion in the Tohoku Area

Leveraging the knowledge gained from its existing 'LEIF' after-school services and integrating it with the unique programs offered by the newly acquired facilities will create significant synergies. This move will push forward a dominant strategy in the Tohoku region, optimizing overall operational efficiency.

### Minimizing Integration Risks through Friendly Business Succession

This acquisition represents a harmonious transition, aiming to enhance service offerings without disrupting existing environments for children attending the facilities. Employees currently engaged at these facilities will be offered conditions that match or exceed their current employment terms, thereby mitigating the risk of talent loss. Post-acquisition, LEIFRAS plans to accelerate the infusion of its sports expertise and digital infrastructure to ensure a smooth integration process.

Future Outlook: Achieving Non-linear Growth through Roll-Up Strategy

LEIFRAS aims to use this acquisition as a successful model to pursue similar roll-up M&A strategies across the country, targeting high-quality sports schools and developmental facilities. With strengthened fundraising capabilities and governance as a publicly traded company on Nasdaq, LEIFRAS is poised to lead the consolidation in the fragmented domestic sports and developmental market, driving non-linear growth in social business platforms that merge sports, IT, and global perspectives.

Overview of the Acquisitions

- Acquired Business: Four after-school program facilities operated by Well Resource Corporation (Sora & Fune Kamiyokagi, Sora & Fune Kuromatsu, Sora & Fune Takasago, and Jupiter Rikuzentakata)
- Contract Signing Date: February 27, 2026
- Execution Date (Closing): May 1, 2026 (tentative)

About LEIFRAS Co., Ltd.

Founded on the principle of "Changing and Designing Sports," LEIFRAS strives to address societal challenges through sports. With approximately 70,000 members in its sports school operations, the company continues its commitment to contributing to society through various endeavors, including after-school program support, health care initiatives, and community collaboration.

For more details, visit their official website or IR site. Feel free to contact LEIFRAS for inquiries and interview requests through their contact form.