[M&A Advisory Announcement] Hoover Brain Co., Ltd. acquires generative AI startup ProofX. M&A Support Organization acts as intermediary.

The M&A Support Organization (operated by Plex Co., Ltd.; Location: Chuo-ku, Tokyo; Representative Director: Shun Kurosaki) is pleased to announce that it has successfully brokered the M&A transaction between Hoover Brain Co., Ltd. and ProofX, Inc.

■ Background and Future Outlook of the M&A

Acquirer: Hoover Brain Co., Ltd.

Hoover Brain Co., Ltd. supports information security measures for corporate users, providing everything from proprietary endpoint software to network appliances.

Looking ahead to the "AI Agent era" where AI makes autonomous decisions and takes action, the company aims to evolve into a "Japan-originated AI Guardian" that protects the trust and safety of AI. Recognizing that recruiting and training highly specialized personnel in the generative AI field takes significant time, the company explored M&A as a means to acquire business, technology, and talent simultaneously, leading to this successful transaction.

Target Company: ProofX, Inc.

Founded in 2022, ProofX, Inc. is a startup that provides business transformation and DX consulting, business creation support, and AI system development utilizing generative AI technology. To further expand its business and customer base, the company determined that partnering with a major partner possessing strong sales capabilities and capital was essential, leading to this strategic M&A with an optimal partner.

This M&A is expected to yield the following five growth synergies:

① Transformation of proprietary products into AI agents
② Strengthening of talent attraction
③ Acquisition of "discerning capabilities" for CVC operations
④ Sophistication of internal group operations
⑤ Mutual expansion with a high-quality customer base

For further details, please refer to the IR information provided by Hoover Brain Co., Ltd.

Notice Regarding Acquisition of Shares of ProofX, Inc. (Making it a Consolidated Subsidiary) and Important Personnel Changes - Hoover Brain Co., Ltd.

■ Comment from the M&A Support Organization Advisor

This was a highly compatible match between ProofX, Inc., which possesses technology, expertise, and talent in the generative AI field, and Hoover Brain Co., Ltd., which has a strong demand for such applications. Through multiple meetings, their visions aligned, and we were able to connect both companies with their ideal partner.

In recent years, an increasing number of companies are prioritizing the utilization of generative AI technology while addressing the significant challenge of security enhancement. The M&A Support Organization will continue to monitor these latest trends closely to realize speedy and optimal matching.

■ About the M&A Support Organization