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COMPUTER ENGINEERING & CONSULTING LTD. rises as it moves to make DDS a equity-method affiliate

Tue Jun 2, 2026 1:44 pm JST Catalyst

Shares of Computer Engineering & Consulting Ltd. <9692> traded firmly higher on Tuesday, following an announcement after the close on Monday, June 1, that it will acquire an additional stake in DDS Inc. to transition the biometrics and cloud authentication specialist into an equity-method affiliate. Prior to the transaction, the IT services firm held a 10.01% stake in Tokyo-based DDS, and the deepened capital commitment was welcomed by the market as a positive catalyst.

Having initially established a strategic capital and business alliance in September 2025, the two companies have actively driven cross-selling initiatives between CEC’s security services division and DDS’s multi-factor authentication technologies, while collaborating on joint R&D to deliver next-generation security solutions and expand their collective client base. The equity-method integration is designed to unlock deeper operational synergies within CEC's core cybersecurity segment. On Friday, May 29, the company executed the purchase of an additional 12.98% of outstanding shares, lifting its total ownership in DDS to 22.98% from the previous 10.01%. CEC noted that the financial impact of this transaction on its full-year earnings guidance will be negligible.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

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