AVALDATA Corporation (TSE: 6918) will pay ¥690 in cash for each outstanding share of the target company it does not already hold, absorbing the smaller Tokyo Stock Exchange-listed developer of image-compression technology as a wholly owned subsidiary. The two boards approved the cash share-exchange agreement on September 11, 2026, with the deal set to take effect December 3, 2026.
The price is a 112.31% premium to the target's ¥325 close on September 10, and premiums ranging from 84.49% to 128.48% over its trailing one, three and six-month trading averages.
| Period | Reference price | Premium to ¥690 |
|---|---|---|
| September 10 close | ¥325 | 112.31% |
| 1-month average (Aug 12-Sep 10) | ¥336 | 105.36% |
| 3-month average (Jun 11-Sep 10) | ¥302 | 128.48% |
| 6-month average (Mar 11-Sep 10) | ¥374 | 84.49% |
AVALDATA is using a simplified share-exchange procedure, so its own shareholders will not vote on the deal. The target's holders are scheduled to approve it at an extraordinary general meeting on November 12. AVALDATA filed the report with regulators on September 14, 2026.
The target's shares are already due to leave the TSE Standard market on October 1, with September 30 as the last trading day, after the company failed to meet the market's ¥1bn floating-share market-capitalization requirement. It had briefly pursued, then abandoned, a dual listing on the Fukuoka Stock Exchange before opting for a sale. Shareholders holding stock through the effective date will still receive the ¥690 cash payment even though the shares stop trading publicly beforehand.
AVALDATA frames the purchase as building a growth pillar beyond semiconductors, pairing its own FPGA-based hardware modules with the target's DMNA image-compression algorithms, which serve government, defense and space clients as well as consumer video applications. The target returned to profit in the year to March 2026, with ¥685mn in revenue and ¥85mn in net profit, following two straight annual losses. Its president holds 41.26% of the company's shares.