Catcha Digital Acquires 60% Stake in Drive 2 Digital to Strengthen Position in Automotive Digital Media

Catcha Digital Berhad (“Catcha Digital”) today announced that iMedia Asia Sdn Bhd (“iMedia”), a wholly-owned subsidiary of Catcha Digital, has entered into a share sale agreement to acquire a 60% interest in Drive 2 Digital Sdn Bhd (“D2D”) for a cash consideration of RM16.2 million.

The cash consideration is payable in 3 tranches across 24 months and is tied to the achievement of the expected profit after tax (“Expected PAT”) over the period of 24 months after completion of the sale and purchase of shares (“Completion”) date, broken down into expected PAT of RM3.5 million and RM4.2 million for the period of 12 months after Completion date, and the period from 13 to 24 months after Completion date, respectively.

This strategic acquisition marks Catcha Digital’s expansion into the automotive digital media sector, specifically in Chinese and Malay language automotive content. This transaction is expected to contribute positively to Catcha Digital’s earnings in the future.

D2D was co-founded by Dannis Tan Boon Fhong (Chief Executive Officer) and Jackie Wong Yong Wee (Chief Operating Officer) in 2018 and it has been profitable since its inception. It is one of the leading automotive digital media companies in Malaysia, managing four prominent automotive media brands: Automachi, Auto123, Careta, and Mekanika.

The network has gained significant traction among automotive enthusiasts and brands, with a combined monthly reach of approximately 1 million website unique visitors, 10 million web visits, 32 million Facebook post reach, and 45 million video views across Instagram, TikTok and YouTube. This audience reach complements Catcha Digital’s existing monthly reach of 20 million across its websites and social media channels.

The acquisition provides significant cross-selling opportunities between Catcha Digital’s existing advertising client base and D2D’s clientele. Catcha Digital and its subsidiaries (“Catcha Digital Group”) will be able to offer D2D’s automotive-focused solutions to its clients while D2D can leverage Catcha Digital Group’s comprehensive digital advertising capabilities and broad reach to enhance its offerings to automotive brands. This synergistic relationship is expected to accelerate growth for both entities.

“We are excited to work with Dannis and his team to propel the growth of the business. This acquisition marks a natural extension for Catcha Digital’s digital media arm to enter the automotive content category. D2D has built an impressive track record in Chinese and Malay automotive content, with strong relationships across major brands in the automotive sector such as Mercedes-Benz, Mazda, Toyota, Honda, BYD, Continental and Michelin.

With the automotive industry increasingly shifting towards digital channels, the combination of D2D’s automotive expertise and iMedia’s digital capabilities creates compelling opportunities. Together, we are uniquely positioned to redefine how automotive brands connect with consumers across ASEAN,” said Patrick Grove, Chairman of Catcha Digital.

“Joining forces with Catcha Digital represents an exciting new chapter in D2D’s growth story. Since 2018, we have built Malaysia’s leading automotive media network across Chinese and Malay segments, reaching over 60 million views monthly across its platforms.

This partnership with Catcha Digital will accelerate our expansion plans in multiple ways – from growing our existing digital media brand to strengthening our influencer marketing capabilities, and potentially expanding into the English language market. The ability to tap Catcha Digital’s existing clientele will also be a key lever of value creation for us,” said Dannis Tan Boon Fhong, CEO & Co-Founder of D2D.

The proposed acquisition 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 RM1 trillion according to Google, Temasek, and Bain & Company’s 2023 SEA e-Conomy report.

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.