Japan-based Pasona Group announced it has come to an agreement with insurance company Dai-ichi Life Holdings on the acquisition of employee welfare service provider Benefit One Inc., a subsidiary of Pasona Group Inc.

In a meeting today, Dai-ichi Life announced that it commenced its tender offer with an offer price of JPY 2,173 (USD 14.55) per share. The tender offer period runs until 11 March. The total purchase price for the acquisition is JPY 292,057 (USD 1,954), which includes the tender offer amount of JPY 168,130 (USD 1,125) and the share buyback amount of JPY 123,927 (USD 829).

The tender offer, squeeze-out process, and share buyback through Benefit One are expected to be completed by the end of May 2024.

Dai-ichi Life had been in a bidding battle with Japanese medical information site M3 over Benefit One. M3’s offer was JPY 1,600 (USD 10.71), while Dai-ichi Life’s initial offer stood at JPY 1,800 (USD 12.05) before the increase to JPY 2,173 (USD 14.55). After the agreement with Dai-ichi Life, the M3 application contract has been terminated.

Benefit One is part of Pasona Group’s outsourcing segment. The company operates a personal business, an incentive business, a healthcare business, a purchasing/settlement agency business, as well as a payment business, with a focus on membership-based services.

After the transaction is completed, Benefit One will no longer be a consolidated subsidiary of Pasona, but both companies will continue their business relationship in the fields of welfare benefits and human resources services as before.

Pasona Group added that it will consider using the funds obtained from this transaction to strengthen its BPO business, invest in digital transformation, expand its shareholder returns and implement M&A in new and existing businesses.

“We expect to record extraordinary profits and losses related to this transaction after the transaction is completed, and we also expect to record extraordinary profits and losses related to this transaction,’ the group stated.

Pasona Group announced it has forecasted revenue of JPY 370 billion (USD 2.47 billion) for the year ended 31 May 2024. Last month it was reported that Pasona Group had pulled its annual forecast amid uncertainty.