We—Nihon PMI Partners, Japan’s only sector-specialized healthcare buyout fund—support companies alongside healthcare experts, including MDs.
This time, we’d like to introduce another actual investment case. The third case is Hospital Net Inc., which handles cashless payment systems for hospital amenities used by patients and automates health screening systems.
In recent years in Japan, the necessity for “shareholder-responsive management” has grown, and market discipline for improving capital efficiency and corporate value has strengthened. As a result, strengthening governance and optimizing portfolios to promote a healthier stock market have become key themes, accelerating the use of carve-outs (business divestitures and subsidiary sales) as an implementation method. Indeed, according to the RECOF M&A Database—a reference source cited in published materials from the Ministry of Economy, Trade and Industry (METI) and others—carve-outs by listed companies are on the rise. Growth accelerated, with a year-on-year increase of +11.4% for the January-September 2024 period and +29.3% for the January-May 2025 period. Within this trend, this transaction is characterized by the fact that Hospital Net had been an equity-method affiliate of TB Group (Tokyo Stock Exchange Standard: 6775), and our fund acquired the shares held within the group. This positions it as a “carve-out transaction from a listed company group.”
Furthermore, regarding the structural changes such as the “delisting” at Long Life Holdings mentioned in the post before last, the “carve-out” in this case, and the “tightening of listing standards,” our company possesses the capability to respond effectively through both private transactions and strong execution.
【Company Overview】
- Core Businesses: “Card Timer Business” managing in-room paid TVs, refrigerators, etc., via card timers; and “Health Check-up System Business” providing digital transformation for guidance and reception at health screening facilities
- Business Area: Tokyo, Osaka
- Revenue: Approx. ¥1.6 billion (fiscal year ending March 2025) , Numbers of Employees: 25
- Market Environment
As mentioned in this post, Japan’s healthcare ICT/DX sector lags behind other countries, but it is a growth area projected to expand at a CAGR of approximately 9.03% from 2024 to 2033.
This company holds the top market share of approximately 50% in Japan’s bedside unmanned payment (prepaid/QR) sector for medical institutions. This business structure is capital-light and generates stable cash flow. Performance is recovering against the backdrop of post-COVID demand recovery.
【Reasons for Investment】
- A proprietary-network-sourced bilateral (off-market) transaction, supporting anticipated returns
It represented an attractive entry point for healthcare IT, with conditions favorable for targeting multiple expansion.
- The ability to design specific value-enhancement measures even before investment
Details are outlined in “Value Creation Initiatives at this Company,” but clear pathways existed to address challenges such as improving profitability and productivity, deepening channel penetration, and expanding product lines—leveraging our network and PMI execution capabilities.
【Value Creation Initiatives at this Company】
- Expanding Market Share in Key Channels 
Leverage our network to focus on capturing major channels not yet fully penetrated
- Portfolio Synergy (e.g., Pleiades Seven) 
Maximize revenue per facility through common infrastructure and cross-selling
Through platform integration, bring previously outsourced health checkup system development in-house, speeding up product development cycles.
【Future Outlook】
We will pursue further enhancement of corporate value by expanding our stable foundation while driving scalable platformization through product expansion and focused channel development.