Mickey Mikitani, Chairman and CEO of Rakuten Group, and Hidekazu Hiraoka, President and CEO of Science Arts

Mickey Mikitani, Chairman and CEO, Rakuten Group, commented, "With this new alliance, we are looking forward to deepening our collaboration with Science Arts across the Rakuten Ecosystem, spanning mobile, digital transformation and beyond. By combining the power of Rakuten's AI technology and solution suite with Buddycom, we aim to significantly improve operational and marketing efficiency for our partner companies, driving growth and maximizing corporate value."

Hidekazu Hiraoka, President and CEO, Science Arts, commented, "We are delighted to strengthen our collaborative relationship with Rakuten and Rakuten Mobile to create new value together. Integrating Rakuten's AI technology with Buddycom will enhance service features and convenience, enabling us to deliver the future of digital transformation to frontline workers and promote brighter and happier workplaces."

Beginning in January 2024, Rakuten Mobile began offering Buddycom as a solution for corporate clients, and from April 2024, the company introduced the Rakuten Mobile Buddycom Set for accommodation facilities registered with Rakuten Travel, promoting digital transformation and operational efficiencies for frontline workers in the service industry and beyond. In the future, based on their business alliance, Rakuten Mobile and Science Arts will expand sales for the Rakuten Mobile Buddycom Set to Rakuten Ichiba and partner companies from across the Rakuten Ecosystem, further driving digital transformation and operational efficiencies by providing customized packages designed to meet the needs of different markets.

In addition, under the basic agreement, Rakuten will leverage its AI technologies and suite of solutions in collaboration with Science Arts to further enhance Buddycom, making it more user-friendly and intuitive as a voice solution that addresses the needs of frontline workers. This joint development aims to improve operational efficiency for Rakuten’s partner companies.

The three companies will continue to explore ways to provide additional value by utilizing data assets and AI to enhance corporate customers’ operational efficiency.

Rakuten plans for investment in Science Arts are as follows.

・Investment method: Subscription of new shares via third-party allotment

・Number of shares subscribed: 819,000 shares

・Investment amount: 434,070,000 yen

・Investment ratio (voting rights basis): 10.17%

・Payment date: October 31, 2024 (planned)

※Product names and service names published in this press release are generally trademarks or registered trademarks of their respective companies. Trademarks such as TM and ® may be omitted when trademarks are listed in this press release.

■ What is Buddycom? ( https://buddycom.net/en/ )

Frontline communication tool “Buddycom” provides a service that enables simultaneous communication with multiple parties similar to a walkie-talkie or a radio by installing an application on a smartphone or tablet using an Internet communication network (4G, 5G, Wi-Fi). In addition to voice, text chat, video, and location (IoT) services, communication is possible through an AI-based digital assistant.

It has been adopted by various companies, including aviation, railroad, construction, welfare facility and distribution businesses, and is used as a means of communication in a variety of industries.

Science Arts provides “Buddycom,” a front-line communication tool, based on its mission of “providing front-line workers with the DX of the future and contributing to creating a society where people work with bright and cheerful smiles.” Buddycom is already in use at more than 1,000 customer sites, and is a Horizontal x SaaS application that enables a new form of team communication at mission-critical sites across all types of industries and businesses by utilizing not only voice but also text, images, video, location information, and AI.

Rakuten Group, Inc. (TSE: 4755) is a global technology leader in services that empower individuals, communities, businesses and society. Founded in Tokyo in 1997 as an online marketplace, Rakuten has expanded to offer services in e-commerce, fintech, digital content and communications to 1.8 billion members around the world. The Rakuten Group has more than 30,000 employees, and operations in 30 countries and regions. For more information visit https://global.rakuten.com/corp/.

Rakuten Mobile, Inc. is a Rakuten Group company responsible for mobile communications, centered on its mobile network operator (MNO) business. Through continuous innovation and the deployment of advanced technology, Rakuten Mobile aims to redefine expectations in the mobile communications industry in order to provide appealing and convenient services for diverse customer needs.

[Company name] Science Arts, Inc.

[Address] MFPR Shibuya Bldg. 5F, 1-2-5 Shibuya, Shibuya-ku, Tokyo

[CEO] Hidekazu Hiraoka

[Capital] 52 million yen

[Established] September 2003

[E-mail] pr@science-arts.com

[Website] https://buddycom.net/en/