Hitachi Information Systems Ltd. said Tuesday it will merge with Hitachi netBusiness Ltd., an Internet data service provider, on April 1.
The two units of high-tech giant Hitachi Ltd. have agreed on a swap ratio of 161 Hitachi Information Systems shares for every Hitachi netBusiness share.
The name of the merged company will be Hitachi Information Systems Ltd.
Through the merger, the Hitachi group will expand its outsourcing business and improve the cost structure of the two units.
Hitachi netBusiness has a workforce of 94 and reported a net loss of 1.1 billion yen for the year that ended March 31, on revenue of 17.2 billion yen.
The merged company will aim to generate revenue of 200 billion yen and a net profit of 7.8 billion yen on a consolidated basis for the year to March 2006.