Japanese technical staffing firm BeNext, formerly known as Trust Tech (2154: JP), announced that it is merging with Yumeshin Holdings Co. Ltd, (2362:JP), a Japanese holding company mainly engaged in the business of labour dispatch.

The absorption-type merger will see the creation of an engineer dispatching powerhouse. The merger will see BeNext as the surviving company.

BeNext and Yumeshin are the 17^th and 19^th  largest staffing firms in Japan according to SIArespectively,.

The merger is expected take effect on 1 April 2021. The business integration is subject to approval at the general meeting of shareholders of both companies.

The merger ratio will see 0.63 shares of BeNEXT Group allotted and delivered for each share of Yumeshin Holdings.

As a result of this merger, Yumeshin Holdings' common stock will be delisted. After delisting, the common stock of Yumeshin Holdings will be acquired by Tokyo Stock Exchange.

The companies said they had repeatedly examined the possibility of a business integration since November 2020.

Both companies said the integration is centered on "expansion of business domain", "strengthening of recruiting ability, human resource development ability, etc." and "strengthening of financial base".

While both firms belong to the same engineer dispatching industry, they have different characteristics.

Both companies have almost no duplication of customers in their main businesses. Furthermore, the merged company will be strengthened in the IT field, which is expected to expand in the future, and the company will expand in scale.

“We believe that we can become a company that has an even greater presence in the engineer dispatching industry,” BeNext and Yumeshin stated.