PETALING JAYA: Green Packet Bhd’s latest acquisition Xendity Pte Ltd is projected to have a compounded annual growth rate (CAGR) of 15%, which will contribute RM100mil in revenue to the group over the next five years.
Group managing director and chief executive officer CC Puan said this was due to Xendity’s partners and strong business pipelines within Malaysia, Indonesia and Thailand.
The acquisition is a strategic one for Green Packet as Xendity’s e-Know Your Customer (e-KYC) software will complement Green Packet’s enterprise products and solutions.
This is expected to bring in material impact to the top and bottom lines of the group’s digital operations.
Back in 2018, Xendity partnered Malaysia’s leading credit reporting agency CTOS to participate in Bank Negara’s e-KYC Financial Technology Regulatory Sandbox programme.
It subsequently entered into an agreement to provide e-KYC solutions to both CTOS and non-CTOS customers.
In recent years, Green Packet said it has transformed into a technology company focused on digital solutions with five strategic business pillars to drive its business growth namely, Digital Solutions for consumers and SMEs; Digital Platforms for enterprises, including cloud services and data centres; Smart Devices; Smart City & Urban Tech for development of technology-enhanced property products and delivery of customised property technology solutions and strategic early and late-stage investment via its KipleX and Green Packet Capital entities.
It added that Xendity will remain as an operating company under its digital platforms business unit.
“Green Packet’s digital platforms unit diversifies the company’s business into cloud computing, with the ability to offer end-to-end solutions across the entire cloud computing stack, from infrastructure to software.
“e-KYC services will be an important component of the cloud computing product offerings such as Platform-as-a-Solution (PaaS) as it allows users to digitally verify the identity of their customers and securely onboard them to conduct online transactions, among others.
“This online customer onboarding capabilities through the e-KYC software is not only essential in the banking and financial services sector, but also necessary for most businesses that require online customer identity verification, ” Green Packet said, adding that the adoption of e-KYC technology was in line with Bank Negara’s efforts to facilitate greater digital offerings of financial services which is expected to pave way for greater innovation in the financial sector, including end-to-end offering of digital financial services for customers.
Green Packet completed the acquisition process for a 100% equity stake in Xendity after getting the green light from its shareholders in an extraordinary general meeting (EGM).
The resolution for the allotment and issuance of the new ordinary shares in Green Packet as part of the settlement for the purchase consideration of up to US$10mil (RM40.46mil) saw 99.98% of shareholders citing in favour.
Of this sum, US$1.5mil will be satisfied in cash while the remaining amount of up to US$8.5mil will be satisfied via the consideration shares.
The consideration shares will be allotted and issued to the vendors of Xendity in three tranches over three financial years, based on specified performance targets.