Catcha Digital Berhad today announced that it has entered into 2 new acquisition agreements, both of which are expected to add to the profitability and earnings per share of the Company.
In the first new acquisition, Catcha Digital has agreed to acquire the remaining 49% equity interest of Ittify Sdn Bhd (“Ittify”), a leading influencer platform in Malaysia, such that Catcha Digital will own 100% equity interest of Ittify after the completion of this acquisition.
The price of the acquisition is RM3.43 million and will be paid in two tranches over two years. Ittify serves more than 100 brands with seven thousand influencers on its platform.
In the second new acquisition, Catcha Digital has agreed to acquire 30% equity interest of Headline Media Sdn Bhd (“Headline Media”), with an option to acquire another 50% equity interest of Headline Media within 36 months.
Headline Media owns and operates WeirdKaya, one of the fastest-growing English language websites in Malaysia, as well as emerging Chinese and Malay language sites, WeirdKaya BM, LokLokWords and EzLokal. The price of the acquisition is RM1.235 million and will be paid in two tranches over two years.
“We expect these acquisitions to contribute positively to our earnings and overall business in the future. Our mission is to build a leading digital group in Southeast Asia and we will continue pursue investments and acquisitions that are earnings accretive,” said Patrick Grove, Chairman of Catcha Digital.
“With the addition of Headline Media to our network of digital media platforms, we will strengthen our English language network and offer a much more comprehensive advertising solution to all our clients. We are very excited to welcome the Headline Media team to the Catcha Digital family and are also very proud to have acquired the remaining 49% equity interest of Ittify that we did not already own.
Ittify continues to grow nicely, making approximately RM0.53 million in profit after tax for the 6-month financial period ended 30 June 2023. We look forward to growing the profitability of both businesses further in the months and years to come,” said Eric Tan, CEO of Catcha Digital.
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