Rakuten of Japan to Acquire eReader Provider Kobo

Rakuten Inc. of Japan and Kobo Inc., a Toronto-based eReading service, announced that they have entered into a definitive agreement under which Rakuten intends to acquire 100% of total issued and outstanding shares of Kobo for US$315 million in cash. Kobo was founded by and spun out of Indigo, a book, gift and specialty toy retailer in Canada. Rakuten provides consumer and business-focused services including e-commerce, travel, banking, securities, credit card, e-money, portal & media, online marketing and professional sports. Upon closing the acquisition, Kobo will maintain its headquarters, management team and employees in Toronto.