HeartCore Enterprises, Inc. sold its wholly‑owned subsidiary, HeartCore Co. Ltd., to Volaris Group UK Holdco LTD in an all‑cash transaction valued at ¥1.8 billion, equivalent to about $12 million. The deal closed on October 31, 2025.
The sale marks a deliberate shift away from the company’s traditional software offerings, a move the management attributes to the rapid rise of generative‑AI technologies that have reshaped the competitive landscape for software firms. CEO Sumitaka Kanno said the divestiture allows HeartCore to concentrate on its more profitable Go IPO consulting platform, which has driven the company’s recent growth.
HeartCore will use a portion of the proceeds to fund a one‑time distribution of $0.13 per share to shareholders. The record date for the distribution is November 10, 2025, with payment on November 17, 2025. The payment is a distribution for U.S. federal tax purposes, not a dividend.
Financial context shows that the company’s software business had been under pressure. In Q1 2025, total revenues were $3.6 million, down from $5.0 million in Q1 2024, and the company posted a net loss of $3.1 million versus a $1.5 million loss in Q1 2024. In contrast, the Go IPO segment generated $17.9 million in revenue and $10.8 million in net income in Q3 2024, representing the bulk of the company’s earnings and a 526% increase in net income year‑over‑year.
The transaction strengthens HeartCore’s balance sheet and reduces near‑term software revenue, but it positions the company to capitalize on growing demand for U.S. market‑entry services. The Tokyo Stock Exchange’s recent tightening of minimum market‑capitalization requirements for Growth Market listings is expected to benefit the Go IPO consulting business, further supporting the company’s strategic focus.
Industry observers note that the divestiture reflects a broader trend of software firms pivoting toward high‑margin, high‑growth services in response to generative‑AI disruption. HeartCore’s move to concentrate on IPO consulting aligns with this shift and may open opportunities for additional strategic alternatives, such as evaluating its Sigmaways subsidiary.
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