Catcha Digital to buy 51% stake in Digital Symphony for RM21.17m

TheEdge Tue, Nov 28, 2023 10:44pm - 4 months View Original


KUALA LUMPUR (Nov 28): Digital media company Catcha Digital Bhd is planning to acquire a 51% equity interest in digital agency DS Services Sdn Bhd, more commonly known as Digital Symphony, for RM21.167 million.

In a press statement on Tuesday, Catcha Digital said it has inked a letter of intent for the acquisition and that the consideration payment will be split into two tranches over two years, payable upon Digital Symphony achieving a profit guarantee of audited profit after tax of RM4 million for the first year post-acquisition, and RM4.3 million for the second year.

"The acquisition is expected to materially increase Catcha Digital’s earnings per share," it said.

It plans to fund the purchase via a combination of internal funds, debt financing and equity financing.

Digital Symphony is a Malaysia-based data-driven digital agency that operates in Malaysia and Singapore. It provides differentiated performance marketing solutions to clients using its proprietary software and analytics tool.

Founded in 2014 by Kuhan Kumar Palaniappan, the company serves a broad range of enterprise clients with a focus on the property development sector, said Catcha Digital.

“Recognised broadly in Malaysia as one of the leaders in their field, Digital Symphony will form a key part of Catcha Digital’s strategy going forward. I am confident [in] Kuhan and his team, and I believe we can grow hand in hand. We look forward to working with the Digital Symphony team to bring the business to greater heights,” said Catcha Digital chairman, Patrick Grove.

Catcha Digital's shares closed up 0.5 sen or 1.12% to 45 sen on Tuesday, giving the company a market capitalisation of RM158.44 million.

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