Japanese video game publisher and developer Koei is set to merge with Tecmo, in a deal which is said to be worth 20 billion yen, or US$207 million. The deal has been initiated by Koei, and is expected to be completed by the end of April 2009.

The merger will see Tecmo shares exchanged for 0.9 shares in the new Tecmo Koei Holdings, set to form in April next year. Meanwhile, Koei shares will be exchanged for one full share in the new company. This move will see Koei shareholders control seventy-five per cent of the new company.

Both companies have an interesting catalogue of titles, with Koei controlling the Dynasty Warriors, Romance of Three Three Kingdoms and publishing rights to older titles in the Disgaea series. Tecmo control the Dead or Alive and Ninja Gaiden franchises.


Ninja Gaiden II from Koei and Dead or Alive 4, from Tecmo.
A report from international news agency Reuters states that the new company will aim 'for an operating profit of more than 16 billion yen in the year ending March 2012', with hopes of sales at 'more than 70 billion yen'.

Mergers within the video game industry have been gaining increasing momentum, with some being successful, while others not so much. In recent times, we've witnessed the creation of the now-giant Activision Blizzard, and EA's attempted acquisition of Take Two Interactive, before the company announced that it would remain independent.