ITFOR wants to stop treating dealmaking as an occasional project. The company said it approved a basic agreement with Sourcing Brothers to create a joint venture focused on mergers and acquisitions, corporate venture capital and post-investment execution, as management pursues its HIGH FIVE 2033 plan and looks beyond organic growth.
The proposed company, provisionally named ITFOR Growth Capital, would house three units, CVC, M&A and business development. ITFOR says the setup is meant to cover the whole chain from sourcing and initial screening to investment execution, closing, post-merger integration, business tie-ups and revenue generation support. Sourcing Brothers already supports ITFOR's CVC and M&A activities, according to the disclosure, which helps explain why the company is being brought in as a minority partner rather than just another outside adviser.
| Feature | Detail |
|---|---|
| Planned company name | ITFOR Growth Capital (provisional) |
| Ownership | ITFOR 90%, Sourcing Brothers 10% |
| Internal setup | CVC Unit, M&A Unit, Business Development Unit |
| Planned timing | Final JV contract, establishment and business start all targeted for July 2026 |
| Group status | Expected to become a consolidated subsidiary of ITFOR |
| Near-term earnings impact | Company says impact on consolidated results in the year ending March 2027 should be minor |
Control is set to remain firmly with ITFOR. It plans to own 90% of the venture, leaving 10% to Sourcing Brothers, and says the new company is expected to become a consolidated subsidiary. ITFOR also said it may provide deal-by-deal lending and other funding for investments or acquisitions. The final joint-venture contract, establishment and business start are all targeted for July, while the company said the effect on consolidated results in the year ending March 2027 should be minor.
The catch is that this is still a basic agreement, not a finished operating company. Some terms, including net assets and total assets, remain undecided, and ITFOR said it will disclose further details later if needed.