KUALA LUMPUR (June 3): Ramssol Group Bhd (KL:RAMSSOL) said it is acquiring controlling stakes in two manpower and recruitment-related companies for RM14.4 million, as the ACE Market-listed group seeks to expand into recruitment, manpower outsourcing and artificial intelligence-powered (AI) workforce analytics.

The human capital management solutions provider said its indirect wholly owned subsidiary Rams Fintech Sdn Bhd had entered into agreements to acquire a 60% stake in INNIO Holding Sdn Bhd (IHSB) and a 49% stake in Agensi Pekerjaan INNIO Sdn Bhd (API).

IHSB owns INNIO Group Sdn Bhd and CariJob Holding Sdn Bhd, which are involved in manpower services, hostel management, recruitment services and an AI-powered cross-border manpower platform.

API, meanwhile, operates a private employment agency business focused on recruiting and placing workers.

The acquisitions will be satisfied via RM3.6 million in cash and the issuance of 15.43 million new Ramssol shares at 70 sen apiece, valuing the share portion at about RM10.8 million.

Ramssol said it intends to fund the cash portion of the deal through internally generated funds, noting that the group had cash and cash equivalents of RM32.76 million as at end-2025.

The acquisitions come with a cumulative profit guarantee of RM8 million for the financial years ending Dec 31, 2026 and Dec 31, 2027, backed by an outstanding order book of RM39.3 million.

The group said the proposed acquisitions would allow it to diversify its revenue base towards more recurring income streams through placement, subscription and outsourcing fees.

Group managing director Datuk Wira Cllement Tan said the acquisitions mark the the group's expansion beyond its human capital management software business.

“With the addition of INNIO and API into our group, we are now expanding our reach across the entire workforce value chain to include talent sourcing and recruitment to manpower outsourcing using AI-powered workforce analytics,” he said in a statement on Wednesday.

Tan added that the acquisitions would also create cross-selling opportunities for the group’s existing products, including PaydayNow and EnGo, across the acquirees’ workforce base.

According to the Bursa Malaysia filing, the acquisitions imply a price-to-earnings multiple of six times based on the average annual profit guarantee.

AskEdge data shows Ramssol is currently trading at a price-to-earnings ratio of 14.3 times, which is the lowest compared to its historical valuation in the last three years. 

Its shares slipped one sen or 1.42% to close at 69.5 sen on Wednesday, valuing the company at RM280.9 million. Year to date, the counter is down 30.5%. 

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