Resona Group and Digital Garage Strengthen Capital and Business Relationship
- Peter Johnson
- Dec 31, 2023
- 2 min read
Digital Garage (TSE Prime: 4819) and Resona Holdings (TSE Prime: 8308) have agreed to enhance the capital and business relationship they set up in November 2022. As well as fortifying their partnership in the payment industry and up-and-coming Fintech sector, the two companies will also be partnering in the startup investing and open innovation domains.
In line with the strengthening of the partnership, Resona HD intends to increase their stake in DG by 10%, doing so through both the inherent repurchasing of their own stock and investments in the open market.
In November 2022, DG and Resona HD established a capital and business alliance. Concentrating on payment operations, the two firms have since deepened their collaboration. The alliance seeks to increase each company's payment industry market share to build a convenient, safe, and secure cashless community. The endeavor is part of both firms' Medium-term Plans, which prioritize Fintech businesses of the future.
Developing a joint sales force to offer Resona Kessai Service to the 500,000 corporate customers of the Resona Group.
Collaborate on crafting innovative FinTech services to suit a variety of customer requirements and provide them to the customers of both corporations.
Maximizing growth through the collaboration of investment funds and taking advantage of startups' innovative technologies and business models.
Proceeds from the disposal of treasury stock will be utilized by DG to carry out strategic mergers and acquisitions, including a partial acquisition of RKS, introduce new business lines related to the upcoming generation of Fintech, as well as advance the development of its payment system infrastructure. Furthermore, DG will establish a "Processing Platform Business" segment devoted to providing its payment system infrastructure for external payment service providers. With an aim to promote the growth of the Japanese Fintech milieu, DG hopes to facilitate the entrance of various companies into the payment business through its cost-efficient payment system network.
This alliance aims to expand the breadth of both DG's finance and DX service offerings, including finance, e-commerce, and marketing business, built upon its purchasing data in order to cater to customers' varied needs. DG is quickening the transformation of its revenue models and broadening its profit margins in furtherance of its "DG FinTech Shift" organisation strategy, as part of its Medium-term Plan to be implemented by May 2023.
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