First some history. Not even two weeks after the head of Tecmo, Yoshimi Yasuda, stepped down following their star developer Tomonobu Itagaki’s leaving the company, Ninja Gaiden developer Tecmo turned down a buyout offer from RPG powerhouse Square Enix. The reason being that they were already in talks with Dynasty Warriors developer and publisher Koei, who they thought would be a better fit than Square Enix.
A month later, Tecmo and Koie had agreed in principle to form a holding company that would merge the business of the two game companies. And today, Reuters has reported that Tecmo and Koei have announced a more definitive plan to combine their business, which is expected to close by April of 2009.
As part of the deal, Tecmo shareholders will be offered nine-tenths of a share in Tecmo Koei Holdings for each share they currently own in the independent gamemaker. Koei stock owners will have one share added to each share they currently own, which translates to the gamemaker’s shareholders owning three-quarters of the new company. Reuters reports the deal is valued at ¥20 billion ($207 million).
Reuters reports that Tecmo Koei Holdings is targeting operating profits in excess of ¥16 billion ($166 million) on revenues of ¥70 billion ($725 million) by the fiscal year ending March 2012.
Via GameSpot