Tecmo Koei merger to close by April

Business combination valued at $207 million sees Dynasty Warriors publisher to take three-quarters ownership stake in new holding company.

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In contrast to EA's unfruitful months-long takeover attempt of rival Take-Two, Koei's courtship of Japanese rival Tecmo was a whirlwind romance. Not two weeks after Tecmo head Yoshimi Yasuda followed Tecmo brain Tomonobu Itagaki out the door, the Ninja Gaiden maker turned down a friendly buyout offer from Square Enix, saying that it was instead in merger talks with Dynasty Warriors purveyors Koei.

A month later, and Tecmo and Koei had agreed in principal to form a holding company that would merge the two game companies' businesses. Today, the Reuters news service reports that Tecmo and Koei have announced more definitive plans for their business combination, which is expected to close by April 2009.

As part of the deal, Tecmo shareholders will be offered nine-tenths of a share in Tecmo Koei Holdings for each share they currently own in the independent gamemaker. Koei stock owners will have one share added to each share they currently own, which translates to the gamemaker's shareholders owning three-quarters of the new company. Reuters reports the deal is valued at ¥20 billion ($207 million).

Reuters reports that Tecmo Koei Holdings is targeting operating profits in excess of ¥16 billion ($166 million) on revenues of ¥70 billion ($725 million) by the fiscal year ending March 2012.

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