Quick take: GPacket shares up 6% on acquisition of e-KYC firm

KUALA LUMPUR: Shares in Green Packet Bhd rose more than 6% this morning after announcing the acquisition of technology firm Xendity Pte Ltd for US$10mil (RM43mil).

The technology and telecommunications company rose 6.62%, or 4.5 sen to 72.5 sen. It is one of the most heavily traded counters on Bursa Malaysia with 85.7 million shares traded.

Singapore-based Xendity, which has significant operations in Malaysia and making inroads into Indonesia, specialises in identity verification processes using e-KYC (electronic know your customer) technology.

“The acquisition of Xendity will strengthen Green Packet’s digital identity verification services, which is a fast-growing sector as more organisations move towards digital transformation,” Green Packet said

Green Packet said the acquisition of Xendity would be made via a combination of cash and shares, as well as performance-based tranches.

Green Packet will initially pay US$1.5mil (RM6.4mil) in cash and issue new ordinary shares worth US$4mil (RM17mil).

Over the next two years, Green Packet will pay up to US$4.5mil (RM19mil) via new shares and these payments will be based on Xendity meeting stipulated key performance targets.