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Malaysia’s digital media firm Catcha Digital is acquiring 92.5 percent stake in banking software firm Theta Service Partner for MYR 35 million ($7.9 million).

Catcha Digital said in a statement on Monday that its wholly-owned subsidiary Catcha Theta has entered into a conditional share sale agreement for the acquisition.

This strategic acquisition marks Catcha Digital’s expansion into the banking software solutions sector, specifically in loan origination software.

The acquisition is split into four tranches of MYR 5.9 million ($1.33 million), MYR 6.6 million ($1.49 million), MYR 11.2 million ($2.53 million) and MYR 11.3 million ($2.55 million) respectively.

The second, third and fourth tranche payments are tied to expected profit after tax of not less than MYR 3.5 million ($789,000), MYR 4 million ($902,000) and MYR 5 million ($1.12 million) for the financial year ended/ending 31 December (FYE) 2024, FYE 2025 and FYE 2026, respectively.

In FYE 2023, Theta and its subsidiaries recorded a profit after tax (PAT) of MYR 3.4 million ($768,000).

This transaction is expected to contribute positively to Catcha Digital’s earnings.

Theta is a provider of loan origination software for financial institutions through its flagship product ORIGINS – a lending solution that streamlines operations across retail, small and medium-sized enterprises (SME), and commercial segments.

The software offers features including automated credit assessment, multi-product support, workflow automation, and regulatory compliance capabilities, enabling financial institutions to process and manage their lending operations while maintaining compliance with complex regulatory requirements.

“This acquisition represents a strategic entry into the banking software sector and is well-aligned with our vision of building a comprehensive digital technology group,

“What particularly impressed us about Theta Group was their deep domain expertise in loan origination systems, evidenced by their long-standing relationships with major financial institutions across multiple markets,” said Patrick Grove, Chairman of Catcha Digital.

According to him, Theta’s proven track record in delivering mission-critical software solutions to its long term customers, combined with a proven management team with deep domain expertise, presents compelling sustainable growth opportunities.

It is noted that Theta has gained significant traction among major financial institutions globally, maintaining long-term relationships spanning over two decades with some of Southeast Asia’s largest banking groups for their operations across the region, including one of the largest banks in Singapore, one of the largest banks in Malaysia, and a prominent Pan-Asian bank headquartered in Taiwan.

Over the past two decades, the firm has established itself as a partner in the banking technology sector, helping bank clients reduce end to end lending process times significantly while processing millions of loan applications across multiple countries including Singapore, Malaysia, the Philippines, Indonesia, Taiwan, India, Hong Kong, Canada, United States and the United Kingdom.

With the increasing focus on digital transformation in the banking sector, increased compliance requirements in the banking sectors imposed by regulators, and the growing demand for efficient loan processing systems, Catcha Digital opined that Theta is well-positioned to capture the expanding market opportunity in the region.

“Joining forces with Catcha Digital strengthens our ability to capture the significant opportunities we see in the banking software sector,” said Leong Kwok Hung, Managing Director of Theta.

He noted that over the firm’s past 25-year journey, it has witnessed firsthand how critical robust loan origination systems have become for financial institutions’ operations, alongside the tailwind presented by tighter regulation amongst the banking industry globally.

“The market is now demanding more sophisticated solutions, particularly around artificial intelligence and cloud capabilities,

“Catcha Digital’s strategic support and regional network will be instrumental as we accelerate our next phase of growth,” he added.

The proposed acquisition aligns with Catcha Digital’s vision to diversify its business to include information technology solutions business and build the leading digital group in ASEAN.

It said the group continues to seek strategic investments and proposed acquisitions that complement its existing segments while expanding its presence in the digital economy beyond digital media.

Malaysian digital media firm Catcha Digital Berhad announced Monday that it has entered into a conditional share sale agreement to acquire a 51 percent equity interest in Malaysia-based digital consultancy DS Services Sdn Bhd (Digital Symphony) for a cash consideration of MYR 22.95 million ($5.16 million).

Catcha Digital said in a statement that the acquisition provides significant cross-selling opportunities between Catcha Digital’s existing advertising client base and Digital Symphony’s clientele.

Catcha Digital and its subsidiaries will be able to offer Digital Symphony’s data-driven performance marketing solutions to its clients, while Digital Symphony can leverage Catcha Digital’s extensive digital media ecosystem and broad reach to enhance its offerings.

This data-driven synergy is expected to accelerate growth for both entities, giving advertisers a more intelligent, and results-focused approach to digital marketing.

According to the statement, the cash consideration is payable in three tranches across 24 months after the date of completion of the sale and purchase of shares, and is tied to the achievement of the expected net profit after tax (PAT) of Digital Symphony and its subsidiaries of MYR 4.5 million ($1.01 million) and MYR 4.5 million ($1.01 million) for the 12 months after completion and the period from 13th to 24th months after completion, respectively.

This transaction is expected to contribute positively to Catcha Digital’s earnings in the future.

Launched in 2017 by Kuhan Kumar, Digital Symphony is a data-driven digital marketing consultancy that operates in Malaysia and Singapore.

It specializes in performance marketing, leveraging automation, data analytics, and custom software solutions to help brands achieve their digital advertising goals.

The company offers solutions designed to enhance digital advertising efficiency through proprietary software and machine learning solutions.

Digital Symphony operates in key industries, including property development, automotive, and education, helping brands execute precision-targeted digital campaigns.

“Kuhan and his team have built a company that doesn’t just run ads—it runs highly optimised, data-driven campaigns that deliver real, measurable impact,

“With this acquisition, we’re doubling down on the power of data, automation, and machine learning to create even better solutions for advertisers,” said Patrick Grove, Chairman of Catcha Digital.

According to him, the combination of Digital Symphony’s result-driven performance marketing and Catcha Digital’s extensive audience reach is a game-changer for brands looking to scale their digital presence.

Kuhan Kumar, Founder and Chief Executive Officer of Digital Symphony, said that since its inception, the firm has been focused on delivering results for its clientele.

“The digital landscape moves fast, and the brands that succeed are the ones that can harness technology and data to make smarter marketing decisions,

“Partnering with Catcha Digital allows us to take our marketing solutions to the next level, reaching more advertisers and delivering even greater value,” he added.

The proposed acquisition also aligns with Catcha Digital’s vision to build the leading digital group in ASEAN, targeting the region’s fast-growing digital economy, valued at approximately MYR 1 trillion ($220 billion) according to Google, Temasek, and Bain & Company’s 2024 SEA e-Conomy report.

The group said it continues to seek strategic investments and proposed acquisitions that complement its existing segments while expanding its presence in the digital economy beyond digital media.

Malaysia-based digital media firm Catcha Digital Berhad has proposed to acquire 60 percent stake in digital media advertising solutions provider Framemotion Studio Sdn Bhd for MYR 37.32 million ($8.4 million).

Catcha Digital said in a statement on Friday that its wholly-owned subsidiary iMedia Asia Sdn Bhd (iMedia) has entered into a conditional share sale agreement to acquire a majority shareholding of 60 percent in Framemotion Studio.

FrameMotion is expected to deliver a profit after tax and minority interest (PATAMI) of no less than MYR 6.8 million ($1.53 million) for the 12 month period after date of completion of the sale and purchase of shares, and MYR 6.8 million ($1.53 million) for the period that is 13th to 24th months after the completion, respectively.

This strategic acquisition combines Catcha Digital’s digital solutions with FrameMotion’s production capabilities in immersive digital experiences and animation.

This transaction is expected to contribute positively to Catcha Digital’s earnings in the future.

FrameMotion, an integrated consultancy, specializing in creating, designing, and delivering immersive digital and animated experiences across Southeast Asia and other countries.

It has consistently delivered groundbreaking projects for a diverse roster of high-profile clients, such as Petronas, Gamuda, Sephora, L’Oréal, Maxis, OCBC and Samsung.

In 2023, FrameMotion also served as the co-organizer for the Van Gogh Alive exhibition, and also launched its own artificial intelligence (AI) driven multi-sensory experience, The Greatest Artist exhibition, which collectively attracted over 300,000 visitors.

FrameMotion has been consistently profitable in the last ten years and recorded a profit after tax of MYR 7 million ($1.58 million) in the financial year ended December 31, 2023.

“We are very excited about this acquisition and believe that integrating FrameMotion’s cutting-edge expertise with our wide network will enable us to offer highly innovative and integrated solutions to clients across the region,

“We can’t wait to push the boundaries of digital storytelling with the FrameMotion team,” said Patrick Grove, Chairman of Catcha Digital.

Jeand Pua Yin Chye, Co-founder and Chief Executive Officer of FrameMotion, said this deal with Catcha Digital is a game-changer for the company.

“Their acquisition not only validates our creative vision but also accelerates our ability to deliver world-class digital experiences,

“We look forward to integrating with Catcha Digital’s broad suite of digital solutions to elevate our offerings to clients of both parties,” he added.

According to the statement, the proposed acquisition also aligns with Catcha Digital’s vision to build the leading digital group in ASEAN, targeting the region’s fast-growing digital economy, valued at approximately MYR 1 trillion ($225 billion) according to Google, Temasek, and Bain & Company’s 2024 SEA e-Conomy report.

The group said it continues to seek strategic investments and proposed acquisitions that complement its existing segments while expanding its presence in the digital economy.

Catcha Digital is an investment holding company based in Malaysia, operates primarily in the digital media, advertising, and software sectors.

IMedia Asia Sdn Bhd is a digital media company that offers integrated advertising solutions to major brands across various industries in Malaysia.

Its digital media assets include OhMedia, Nara Media, Weirdkaya, Goody25, The Reporter, and Ittify.

Nexible Solutions Sdn Bhd, a subsidiary under the software sector, provides business-to-business software products to its customers.

Its flagship product, OutPerform, is an artificial intelligence-powered sales automation software that enables clients to manage new leads and customer relationships.

Catcha Digital Berhad (“Catcha Digital” or the “Company”) announces its financial results for the fourth quarter ended 31 Dec 2024 (“Q4 FY2024”).

For Q4 FY2024, the Company reported a record Profit After Tax and Minority Interest (“PATAMI”)  of RM1.80 million. This marks a significant increase compared to Q4 FY2023, where the Company reported PATAMI of RM0.10 million, achieving year-over-year growth of 1,669%. This brings the total PATAMI of the Company in FY2024 to RM5.20 million, marking a 255% increase from RM1.46 million in FY2023. 

“We are proud of the team for achieving such impressive profit growth amidst in the last quarter. This is a testament to the successful launch of innovative solutions in the previous quarter, such as augmented reality advertising and offline-to-online campaigns, allowing our advertisers to connect more effectively with their customers. We remained focused on achieving sustainable growth and earnings for our shareholders,” says Eric Tan, Chief Executive Officer of Catcha Digital.

 “We are pleased to have achieved this record profit quarter and for the year in our sixth quarter after exiting GN2 status in July 2023 and we strive to maintain this momentum. As we continue our mission to build a leading profitable digital group in Southeast Asia, we will pursue strategic partnerships, investments and acquisitions that are accretive to our earnings per share. The prospects for the business remain favourable and we look forward to executing on all the great opportunities which we will share with the market soon” says Patrick Grove, Chairman of Catcha Digital.

In Q4 2024, the Company announced 3 strategic acquisitions which are expected to contribute positively to Catcha Digital’s earnings in the future.

On 20 Dec 2024, Catcha Digital announced a 60% acquisition of Drive 2 Digital Sdn Bhd (“D2D”) for RM16.2 million. The payment, to be made in three tranches over 24 months, is contingent on D2D achieving a PAT of RM3.5 million in the first 12 months post-completion and RM4.2 million in the subsequent 12 months. This strategic acquisition marks Catcha Digital’s expansion into the automotive digital media sector, specifically in Chinese and Malay language automotive content. 

On 19 Dec 2024, Catcha Digital announced a 70% acquisition of Tastefully Malaysia Sdn Bhd for RM7.6 million in cash. The payment, tied to the profit after tax, will be made in 4 tranches over 36 months: RM0.5 million for 2024, RM1.1 million for the first 12 months after completion, RM1.4 million for the next 12 months, and RM1.6 million for the final 12 months. This acquisition supports Catcha Digital’s goal of expanding its integrated digital media business for omnichannel advertising solutions. 

On 28 Nov 2024, Catcha Digital announced a 51% acquisition of Nexible Solutions Sdn Bhd (“Nexible”) for RM11.3 million, which was completed on 22 Jan 2025. Nexible provides business-to-business software products to its customers. Its flagship product, OutPerform, is an artificial intelligence-powered sales automation software that enables clients to manage new leads and customer relationships.

The cash consideration will be paid in 4 tranches and is tied to the achievement of the profit after-tax guarantee (“PAT Guarantee”) over the period of 36 months, broken down into PAT Guarantee of RM0.7 million, RM1.2 million, RM2.2 million and RM3.3 million for the 12-month period ended 31 Dec 2024, 31 December 2025, 31 December 2026 and 31 December 2027 respectively.

This strategic acquisition marks Catcha Digital’s expansion into the IT sector, specifically in software-as-a-service (SaaS) and artificial intelligence (AI) solutions.

https://theedgemalaysia.com/node/716578

KUALA LUMPUR (June 24): Digital media company Catcha Digital Bhd (KL:CATCHA) said on Monday that it will co-found KS Lagi, a new digital media business scheduled to launch in the second half of this year.

The company has inked a joint venture agreement with the founders of Keluar Sekejap Sdn Bhd, Khairy Jamaluddin (KJ) and Shahril Hamdan. KJ is the former health minister while Shahril is the former information chief of United Malays National Organisation (Umno).

In a statement, Catcha Digital said the company intends to assume the commercial and business responsibilities for the existing Keluar Sekejap’s business and KS Lagi. Additionally, KS Lagi will create and distribute new media content across Catcha Digital’s existing network that reaches about 20 million Malaysians every month.

Keluar Sekejap claims to be a fast-growing media brand centred around thought-provoking conversations and has achieved tremendous success in the digital media space since its launch in 2023. It has amassed over 1.4 million subscribers and followers across its social media platforms, and over 39 million views on YouTube.

“We are thrilled to partner with KJ and Shahril to co-found KS Lagi,” said Catcha Digital chairman Patrick Grove.

“Across Catcha Digital and Keluar Sekejap’s platform we are already reaching the vast majority of Malaysians every month, and we see our audience yearning for a new approach to content and we will be a key part of this.

This collaboration aligns with our mission to build a leading profitable digital group in Southeast Asia, as we continue to pursue strategic partnerships, investments, and acquisitions that are accretive to our earnings per share,” Grove added.

In March last year, Catcha Digital completed its acquisition of a 100% stake in iMedia Sdn Bhd, which specialises in providing digital media advertising solutions to clients in Malaysia.

About four months later, Bursa Malaysia Securities removed the company from its cash company status under Rule 8.03 and Guidance Note 2 (GN2) of the ACE Market Listing Requirements.

On the financial front, Catcha Digital recorded its fourth consecutive profitable quarter. Prior to this, the company has been in straight net losses since 1QFY2019.

The company’s net profit more than doubled to RM1.47 million for the first quarter ended March 31, 2024 (1QFY2024), as compared to RM399,000 in the previous year’s corresponding quarter.

Shares of Catcha Digital declined 1.5 sen or 3.4% to close at 43 sen on Monday’s closing bell, giving it a market capitalisation of RM149.71 million.

Discover the inspiring journey of Eric Tan, the Group CEO of Catcha Digital Berhad who transformed a substantial amount of capital into a thriving business empire! In this video, we delve into the remarkable story behind his success, exploring the challenges he faced, the strategies he employed, and the lessons he learned along the way.

https://www.bfm.my/podcast/morning-run/the-breakfast-grille/catcha-digital-symphony-marketing-billboard-imedia-advertising-gn2

Digital media company Catcha Digital Bhd has been in rapid growth through various acquisitions. We ask CEO, Eric Tan how these will contribute positively to the group’s earnings and overall business in the future as well as their recently completed regularisation plan from exiting GN2 status.

Produced by: Moh Heng Ying

Presented by: Philip See

https://theedgemalaysia.com/node/691849

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.