CyberStep acquires NAXA for $1.9M

The target develops streaming apps, subtitle-generation AI, ad-insertion AI and video editing apps. The purchase covers 100% of NAXA's shares, with an expected completion date of April 24, 2026. Advisory costs of about ¥6M bring the total outlay to roughly ¥306M. For the year to September 2025, NAXA reported sales of ¥200M, operating profit of ¥47M and net assets of ¥35M. That puts the price at roughly six times annual revenue. NAXA says it has delivered more than 70 development projects, mostly for major broadcasters, and has know-how in video analysis and Japanese speech recognition. CyberStep plans to reuse its own video assets and build a television and entertainment AI/DX business. The company moved to a holding structure in 2025 and has been diversifying through M&A and alliances. Other deals that year include TRUXiA for ¥420M and a secondhand goods business for ¥950M. In June it agreed to buy the HOMEGAME CAP business for ¥670M. For AI founders, the deal shows a buyer paying a modest price for a profitable vertical AI shop with broadcaster clients and domain-specific models. Niche tools like Japanese speech recognition and subtitling can find an exit with non-AI acquirers that want a new revenue line. Small, profitable teams with named customers look like the typical target.