PETALING JAYA: Catcha Digital Bhd has entered into a letter of intent to acquire a 51% equity interest in Malaysia’s award-winning digital agency DS Services Sdn Bhd – commonly known as Digital Symphony among industry players – for RM21.165 million.
The acquisition is expected to materially increase Catcha Digital’s earnings per share (EPS).
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 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, data-driven digital agency, operates 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 Gamuda Land, Mah Sing, Sunway Property, Tropicana Corporation and Sime Darby Property.
Digital Symphony was founded by Kuhan Kumar Palaniappan in 2014. Prior to founding Digital Symphony, Kuhan was founder and CEO of Techworks Solutions Sdn Bhd, an IT and software service provider with clients like Maybank, Sepang International Circuit and Baker Hughes Malaysia.
“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 Kuhan.
Meanwhile, Catcha Digital chairman Patrick Grove said 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.
