<article>Tokyo-based <a style="color: #000080;" href="http://www.compath.me/?lang=en" target="_blank">Compath.me</a>, which offers family photo service <a style="color: #000080;" href="https://kiddy-photo.com/?locale=en" target="_blank">Kiddy</a>, has been acquired by Japanese internet company <a style="color: #000080;" href="https://mixi.co.jp/en/overview/">Mixi</a>, which is listed on the Tokyo Stock Exchange.</article>

Tokyo-based <a style="color: #000080;" href="http://www.compath.me/?lang=en" target="_blank">Compath.me</a>, which offers family photo service <a style="color: #000080;" href="https://kiddy-photo.com/?locale=en" target="_blank">Kiddy</a>, has been acquired by Japanese internet company <a style="color: #000080;" href="https://mixi.co.jp/en/overview/">Mixi</a>, which is listed on the Tokyo Stock Exchange.
Financial terms of the acquisition were undisclosed.
The acquisition will see members of Compath.me team, including founder and CEO Hiromichi Ando, join Mixi&#8217;s workforce, according to an announcement on Monday.
Mixi’s ‘Vantage Studio’ department, the new business development team directly led by Mixi co-founder and chairman Shinji Kasahara, has been offering a family photo service called <a style="color: #000080;" href="https://mitene.us/" target="_blank">Mitene</a> (meaning ‘Check out this!’ in Japanese) since 2015 and acquired in excess of one million users.
The acquisition of Compath.me, which was incepted in 2011, will see the Kiddy service merged with Mitene and user migrated to Mixi&#8217;s offering. Kiddy will cease operations in late April as part of the merger.
Mixi graduated from Tokyo-based startup incubator <a style="color: #000080;" href="https://onlab.jp/en/">Open Network Lab</a> as a photo-sharing app aimed at location and event discovery before evolving towards a family photo services in 2013. .
Compath.me secured seed funding from DG Incubation, a subsidiary of Digital Garage and the company operating Open Network Lab, in addition to financial backing from Architype, and Beenos, (formerly Netprice.com). Its last funding raised was a venture investment worth 50 million yen from Japanese Internet services firm <a style="color: #000080;" href="http://united.jp/en/" target="_blank">United</a> in May 2014.
With Japan&#8217;s economy stagnant, the <a style="color: #000080;" href="https://www.foreignaffairs.com/articles/japan/2016-02-04/tokyos-ambition-generation" target="_blank">growing startup ecosystem in Japan</a>, which saw venture capital investments rise from $1 billion in 2014 to $2 billion in  2015, has seen its corporate sector &#8211; affected by significant uncertainty &#8211; slowly commence investments in various technology startups as they seek to diversify business lines and originate new growth sources.
In recent quarters, corporates listed on the Tokyo Stock Exchange have been participating in early-stage venture investments amid an apparent increase in business dynamism and a <a style="color: #000080;" href="http://news.stanford.edu/2016/08/31/japan-transforming-innovation-culture/" target="_blank">transforming business culture</a> aimed at driving and increasing innovation.
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Tokyo-listed Mixi has acquired Compath.me, which offers the family photo service Kiddy.

Tokyo-listed Mixi acquires photo service provider Compath.me

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