Tecmo has successfully negotiated a merger with fellow Japanese publisher Koei. The two will join forces to form Tecmo Koei Holdings, which goes into effect on April 1, 2009.

Koei will hold three quarters of the newly combined publisher, and 20 billion yen ($207 million) in stock will be infused into the holding company during the merger.

The two companies recently had tough times, as they faced various problems in the form of development problems and employee lawsuits, among other things.

Tecmo Koei is aiming for a profit of 16 billion yen ($164 million) in its fiscal year 2011. In comparison, the two companies added up to a combined profit of 8.5 billion yen ($87 million) last year.