Companies Look to Acquire Atlus Games' Index Corporation
posted on by Rae First
Bloomberg Japan reported on Friday that about 20 companies, including Sega-Sammy Holdings, are looking to acquire Index. Index owns and manages Atlus, a former independent company and the current brand of games such as Shin Megami Tensei and Catherine. According to Bloomberg's source, the first round of bids were in the range of 20 billion yen (about US$200 Million).
Index came under suspicion for improper accounting in June. Index reported that it earned a total of 18.3 billion yen (about US$190 million) last year from console/portable system games and smartphone games. However, according to those involved in the investigation, the company is under suspicion of exaggerating revenues using round-trip transactions.
Later that month, Index filed for civil rehabilitation bankruptcy. Civil rehabilitation is a relatively new form of bankruptcy procedures in Japan, having been passed into law in 1999. Index lists about 24.5 billion yen (about US$250 million) in debts.
The company plans to continue its operations under the supervision of the court and rebuild. The final bidding candidates are expected to be selected as soon as next week and a final deal to be made sometime in August.