KUALA LUMPUR: SMRT Holdings Bhd is acquiring a 37.5 per cent stake in Singapore-based Novus Technologies Pte Ltd for S$7.09 million (RM22.48 million) to strengthen its digital and payments technology business.

In a filing with Bursa Malaysia, the group said it had signed a conditional sale and purchase agreement with Asia Fintech Ventures Group Pte Ltd to buy 1.69 million Novus Technologies shares.

The acquisition will be funded entirely through internally generated funds.

Novus Technologies provides digital infrastructure and payments technology solutions, including self-service terminals, point-of-sale systems and managed financial transaction services across markets such as Sri Lanka, the Philippines and Cambodia.

SMRT said the acquisition is part of its strategy to expand its information technology and digital solutions business, giving the group access to Novus Technologies' platforms and regional customer base.

It expects the enlarged group to benefit from complementary customer networks, stronger product offerings and joint research and development initiatives.

It said the acquisition could support long-term earnings by boosting recurring revenue and enhancing its presence in Southeast Asia's digital and Internet of Things markets.

"Barring unforeseen circumstances, the acquisition is expected to be completed by the fourth quarter of 2025," SMRT said.