Digital Hearts Holdings

Digital Hearts Holdings

closed

Provides software debugging, software testing, and other services.

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DateInvestorsAmountRound
N/A

€0.0

round

JPY1.0b

Post IPO Debt
Total Funding000k
Notes (0)
More about Digital Hearts Holdings
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Digital Hearts Holdings Co., Ltd. is a publicly traded entity specializing in software quality assurance and testing services, structured as a pure holding company. The firm's operations are segmented into two primary divisions: the Entertainment Business and the Enterprise Business.

The company was established in April 2001 by Eiichi Miyazawa, who currently serves as Director and Chairman. Miyazawa identified a business opportunity in debugging video game software during the industry's expansion, pioneering the outsourced game debugging sector in Japan. This initial focus, the Entertainment Business, provides debugging services for console and mobile games, detecting software defects from a user's perspective. This segment also offers global support services for game developers, including translation, localization quality assurance (LQA), and marketing assistance. It has historically been a consistent source of cash flow for the company.

Recognizing the need for diversification, the company initiated a "Second Founding" period in 2017 to seriously penetrate the enterprise market. This strategic shift led to the significant growth of the Enterprise Business, which provides system testing, quality assurance consulting, and security services for non-entertainment software and systems. This expansion was fueled by an increasing demand for digital transformation (DX) and a persistent shortage of IT personnel. The Enterprise Business now constitutes a major revenue driver, at times surpassing the Entertainment segment in sales.

Key milestones in the company's history include its reorganization as a joint-stock company in 2003 and its listing on the Tokyo Stock Exchange's Mothers market in February 2008, followed by a move to the First Section in February 2011. The transition to a holding company structure occurred in October 2013 with the establishment of Hearts United Group Co., Ltd., which was later renamed Digital Hearts Holdings Co., Ltd. in July 2018. The company has expanded its global footprint through the establishment of subsidiaries in Korea, the USA, Thailand, and China, and through acquisitions such as LOGIGEAR Corporation in the US and Vietnam to bolster test automation services. In a move to maximize the growth potential of both core businesses, the company announced in May 2023 its intention to prepare for a spin-off listing of AGEST, its primary subsidiary in the Enterprise Business, targeted for completion by the end of 2025.

Keywords: software testing, game debugging, quality assurance, enterprise systems, localization services, cybersecurity, software testing outsourcing, system testing, global quality partner, test automation, marketing support, DX solutions, IT services, software development support, digital society, QA consulting, mobile game testing, console game testing, security services, user-perspective testing

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Investments by Digital Hearts Holdings

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ACQUISITION Jul 2015