Sharp Corporation (Sharp) announced its decision to carry out an absorption type merger of its wholly-owned subsidiary, AIoT Cloud Inc. (AIoT Cloud), effective 1 July 2025.
AIoT Cloud mainly engages in the recurring businesses driven by cloud services and data utilisation. By this Merger, Sharp aims to accelerate the revenue growth in those businesses through the effective use of its management resources, as well as to expand the solution business of its Smart Workplace Business Group by leveraging the development talent and customer base of AIoT Cloud.
The merger agreement was concluded on 23 April with an implementation date set for 1 July 2025.
Since this is an absorption type merger with Sharp as a surviving company, AIoT Cloud will be dissolved through the merger. Currently, AIoT Cloud is in a state of negative net worth; however, prior to this merger, Sharp plans to resolve the issue by waiving a part of the claims it holds against AIoT Cloud.
Since the Merger will be an absorption-type merger between Sharp and its wholly owned subsidiary, there will be no issuance of new share or no delivery of monetary consideration, etc.
The impact of the merger on Sharp’s consolidated results will be minor as it is a merger with a wholly-owned subsidiary.
