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TOKYO, September 10, 2004 - NextCom K.K. ("NextCom", a consolidated subsidiary of CSK) and Mitsui & Co., Ltd. ("Mitsui") have agreed to a merger between NextCom and Mitsui's consolidated subsidiaries ADAM NET LTD. ("Adam Net") and BSI Co., Ltd. ("BSI"). The three merging companies signed a memorandum of agreement today. The planned merger date is December 11, 2004, with NextCom as the continuing entity.
CSK and Mitsui have been investigating ways of cooperating in the IT services sector since April 2002, and the planned merger is a result of these discussions. The companies believe that by bringing together the complementary capabilities of each participating business the merged entity will be able to extend its activities into new business areas with high growth potential.
CSK and Mitsui have also formed a basic agreement to hold strategic meetings in pursuit of alliances and cooperation in a wide range of other fields, including IT, broadcasting, and telecommunications. The specific sectors targeted for strategic alliances are:
1. Network integration
2. Business process outsourcing (BPO)
3. IT outsourcing (ITO)
4. Systems integration
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In network integration, the strengths of NextCom and Adam Net in data and voice respectively will be amalgamated and a structure created that allows the provision of services to the broad customer bases of CSK and Mitsui. |
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In BPO, the aim will be to provide efficient, high-quality services that combine CSK and Mitsui's complementary specialized platforms (service infrastructure, contact centers, data centers, etc.), and to strengthen CSK Group's contact center, data entry center and other operations. |
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By finding areas of cooperation between CSK's strong multi-layered Group businesses and Mitsui's Group businesses, the strategic alliance aims to develop broad capabilities in everything from systems integration to BPO, creating a service line-up that meets the diversifying needs of customers. |
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Through the strategic alliance, CSK and Mitsui aim to offer high-quality solutions, combining CSK's specific knowledge of customers' industries with Mitsui's extensive customer base. |
The merger of NextCom will mean that from the second half of the current fiscal year NextCom will become an affiliated company of CSK, accounted for under the equity method. Any impact of the merger on CSK's business forecasts for the current fiscal year will be announced as soon as practicable.
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