Hikari Tsushin, Inc. (TSE:9435) agreed to acquire 37.2% stake in Zappallas, Inc. (TSE:3770) for ¥1.4 billion on July 25, 2025. The consideration consists of common equity of Hikari Tsushin, Inc. at a ratio of 0.0104 per common equity of Zappallas, Inc. As of announcement, the Group holds 5,634,200 shares, which is 62.78% of the total number of issued shares of Zappallas (10,739,000 shares) minus the number of treasury shares (1,764,603 shares). The transaction is subject to shareholders approval of Zappallas, Inc.

As of September 30, 2025, the transaction has been approved by the shareholders of Zappallas. The expected completion of the transaction is November 1, 2025.

Hikari Tsushin, Inc. (TSE:9435) completed the acquisition of 47.54% stake in Zappallas, Inc. (TSE:3770) on November 1, 2025.