Malaysia-based digital media firm Catcha Digital Berhad is acquiring 51 percent equity interest in digital agency, DS Services Sdn Bhd or more commonly known as “Digital Symphony” among industry players for MYR 21.17 million ($4.55 million).

Catcha Digital said in a statement on Tuesday that the firm has entered into a letter of intent (LOI) to acquire the stake.

According to the statement, the acquisition is expected to materially increase Catcha Digital’s earnings per share.

“If the proposed acquisition materializes, this would enable Catcha Digital Group to leverage on DS Services’ expertise to deliver a more comprehensive range of solutions to the clientele of both the Group as well as DS Services,

“Similarly, DS Services would also be able to strengthen its market position by gaining access to the financial strength and client base of the group,” said Catcha Digital.

It is noted that Catcha Digital Group operates businesses in the digital media, advertising and software industries, providing advertising solutions to clients in the fast-moving consumer goods, retail, property, entertainment and other industries in Malaysia.

Meanwhile, Digital Symphony is principally engaged in providing digital consulting and digital marketing services, encompassing the areas of market research, analytics, turnkey management of digital marketing strategies as well as development of applications, websites and mobile applications.

According to the statement, 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 MYR 4 million ($860,000) for the first year post acquisition and MYR 4.3 million ($920,000) for the second year post acquisition.

Payment for the purchase consideration of Digital Symphony is expected to be funded via a combination of internally generated funds, debt financing and equity financing.

Digital Symphony is a Malaysia-based data-driven digital agency, operating across Malaysia and Singapore.

Leveraging its proprietary software and analytics tool, Digital Symphony provides differentiated performance marketing solutions to its clients.

The company serves a broad range of enterprise clients with a focus on the property development sector, including prominent companies such as Malaysian property firms Gamuda Land, Mah Sing, Sunway Property, Tropicana Corporation and Sime Darby Property.

Digital Symphony was founded by Kuhan Kumar A/L Palaniappan in 2014.

Prior to founding Digital Symphony, Kumar was Founder and Chief Executive Officer of Techworks Solutions Sdn Bhd, an information technology (IT) and software service provider with clients like Maybank, Sepang International Circuit and Baker Hughes Malaysia.

Prior to that, he was with the research and development (R&D) team in Western Digital (Malaysia) Sdn Bhd, working on automated assembly lines.

“We are excited to become part of Catcha Digital as this will enable us to unlock new growth opportunities,

“At the same time, we look forward to bringing our proprietary software and analytics tools along with our capabilities in performance marketing to Catcha Digital’s existing clients,” said Kumar, Founder and Chief Executive Officer of Digital Symphony.

Catcha Digital Chairman Patrick Grove said that recognized 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 with 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,” he added.

Catcha Digital is a Malaysia-based investment holding company, focused on operating businesses in the digital media, advertising and software industries.

The group’s wholly-owned subsidiary, iMedia Asia Sdn Bhd, is a digital media company that provides integrated advertising solutions to major brands in the fast-moving consumer goods, retail, property, entertainment and other industries in Malaysia.

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