Malaysia-based digital platform Catcha Digital is poised to enter the IT sector, specifically focusing on software-as-a-service (SaaS) and artificial intelligence (AI) solutions, through a significant acquisition. The company has announced plans to acquire a 51% interest in Malaysian SaaS firm Nexible Solutions for a total cash consideration of RM11.38 million, which translates to approximately $2.65 million.
Nexible Solutions is known for its business-to-business (B2B) SaaS offerings, with its flagship product, Outperform, being an AI-driven sales automation platform. This tool enables businesses to efficiently manage leads and enhance customer relationship dynamics, marking a growing trend towards AI automation in business practices.
The acquisition agreement stipulates that the cash consideration will be paid in four future installments, contingent upon achieving specific profit after-tax (PAT) guarantees. These guarantees are set for the financial years ending 31 December 2024, 2025, 2026, and 2027, broken down as follows: MYR 700,000 ($157,587), MYR 1.20 million ($270,000), MYR 2.20 million ($500,000), and MYR 3.30 million ($740,000), respectively. This structured payment plan highlights a deliberate approach by Catcha Digital, allowing it to tie its financial outlay to performance metrics over the next several years.
Commenting on the acquisition, Patrick Grove, Chairman of Catcha Digital, expressed confidence that the company’s extensive background in scaling digital enterprises, particularly in sectors like real estate, equips them to effectively bolster Nexible’s growth and aspirations for regional expansion. Speaking to Marketing Interactive, he stated, “With Catcha’s extensive experience in scaling digital companies, particularly those serving the real estate sector, we are well-positioned to support Nexible’s growth trajectory and regional expansion plans.”
This strategic move not only marks Catcha Digital’s entrance into the burgeoning SaaS and AI industry, but it also underscores a broader trend of increasing investment in AI-powered technologies within business frameworks. Industry forecasts indicate a growing reliance on automated solutions, which are expected to transform many business practices and enhance operational efficiencies across different sectors.
As Catcha Digital progresses with this acquisition and begins to integrate Nexible Solutions into its portfolio, the implications for both the company and the wider technology landscape in Malaysia could be significant, with potential impacts on market competitiveness and innovation in the digital realm.
Source: Noah Wire Services