Sunrise Capital Acquires Japanese IT Services Provider Earth Technology

CLSA Capital Partners, the asset management business of CLSA, has acquired Japan-based bilingual IT services provider Earth Technology Co for an undisclosed amount, according to an announcement Monday.

The acquisition is made through Sunrise Capital III, a CLSA Capital Partners fund that invests in established, mid-cap companies with strong growth potential in Japan.

Earth Technology is known for providing high-quality bilingual IT services in Japanese and English, with a corporate slogan, “English x IT Drives Business Growth”. The company’s services are in demand in Japan’s IT industry, where engineers proficient in English are a scarce resource.

Since its inception, Earth Technology has been supplying bilingual engineers and contributing to the development of the Japanese economy. It maintains one of the largest labor forces of bilingual engineers in the IT industry in Japan, with approximately 300 engineers as of December 2019.

The company currently operates from offices in Tokyo, Osaka, and Sapporo, and plans to open new offices in Nagoya and Fukuoka this year to further enhance growth.

In addition, Earth Technology was designated as a “Consulting Partner” by Salesforce.com Inc. in September 2019 and has started providing new cloud solutions to its clients.

Following the acquisition, Earth Technology’s president, Akio Tanikawa, will transition to non-executive chairman while executive vice president Tatsuya Noshiro will be promoted to president.

Despite Sunrise III’s acquisition of a majority stake in the company, there will be no material changes to Earth Technology’s management team, company name, and business operations, according to the announcement.

“Sunrise III will assist in achieving further growth by providing support to the company on various aspects of the business such as streamlining and enhancing the organizational framework, strengthening sales capabilities, assisting in the recruiting processes, and enhancing its branding strategy,” the company said.

Sunrise Capital, a Japan-dedicated private equity strategy of CLSA Capital Partners, capitalizes on opportunities in the mid-cap buyout sector.

It has developed a unique “body-on” approach, which includes seconding professionals to assist portfolio companies in realizing their growth potential and supporting their overseas expansion through CLSA’s global network.

Sunrise Capital has raised approximately US$1 billion to date and completed investments in approximately 30 companies, including both standalone and follow-on investments since its establishment in 2006.