Bandai Co. and Namco Ltd. have announced an agreement to merge their game and toy divisions, creating Japan’s second largest toy and video game maker, the biggest being Sega Sammy Holdings Inc. The merger will bring combined Bandai and Namco sales to 450 billion yen (US $4.28 billion). Namco Bandai Holdings Inc. will start operations in September 2005.<\/p>\n
Bandai will buy Namco for $1.7 billion in cash and stock. The Tokyo-based companies will combine Sept. 29 under the name Namco Bandai Holdings Inc. and will be led by Bandai President Takeo Takasu and Namco Vice Chairman Kyushiro Takagi.<\/p>\n
Bandai earns more than half of its sales from plastic models, trading cards, and other toy and hobby products, and about a fifth of revenue from video games software and arcade video game machines.<\/p>\n
Namco, which competes with Sega in Japan’s amusement center market, earns more than 60 percent of its revenue from arcade machines and running its own game centers. Sales of console video game software account for about a quarter of Namco sales.<\/p>\n