GMO TECH Holdings is moving quickly from buying GMO Trihatch to folding it into its main MEO arm. On June 15 the company said GMO TECH will absorb GMO Trihatch in an absorption-type merger scheduled to take effect on October 1, after a planned merger agreement on August 24. Because both companies are wholly owned within the group, no new shares or other consideration will be issued.
The operating logic is straightforward. GMO TECH already sells MEO services under MEO DASH! by GMO, and the company says that brand leads domestic MEO market revenue in ITR's 2023 to 2025 forecasts. Trihatch, which GMO TECH bought in February, also provides MEO services. Management says putting those resources inside GMO TECH should raise efficiency and speed decision-making. In less corporate language, one MEO reporting line is apparently preferable to two.
After the merger, GMO TECH survives and GMO Trihatch is dissolved. GMO TECH's current president is set to remain president, while Trihatch's president is slated to become deputy president of the combined company. GMO TECH Holdings says the impact on consolidated earnings will be minor, so this looks more like operating consolidation than a near-term earnings event. The disclosure does not set out numerical synergy, cost-saving or sales targets for the combined MEO business.