From left: Kuhan Kumar, founder and CEO of Digital Symphony; Sarojah Thandan, director and shareholder of Digital Symphony; Eric Tan, CEO of Catcha Digital; and Voon Tze Khay, CEO of iMedia Asia (subsidiary of Catcha Digital)
KUALA LUMPUR: Catcha Digital Bhd
has entered an agreement to acquire a 51% equity interest in digital marketing consultancy DS Services Sdn Bhd (Digital Symphony) for RM22.95mil.
In a statement, the group said the acquisition provides significant cross-selling opportunities between Catcha Digital’s existing advertising client base and Digital Symphony’s clientele.
Catcha Digital and its subsidiaries will be able to offer Digital Symphony’s data-driven performance marketing solutions to its clients, while Digital Symphony can leverage Catcha Digital’s extensive digital media ecosystem and broad reach to enhance its offerings.
The data-driven synergy is expected to accelerate growth for both entities,
giving advertisers a more intelligent, and results-focused approach to digital marketing.
"With this acquisition, we’re doubling down on the power of data, automation, and machine learning to create even better solutions for advertisers.
"The combination of Digital Symphony’s result-driven performance marketing and Catcha Digital’s extensive audience reach is a game-changer for brands looking to scale their digital presence," said Patrick Grove, chairman of Catcha Digital.
The cash consideration is payable in three tranches across 24 months after the date of completion of the sale and purchase of shares, and is tied to the achievement of the expected net profit after tax (PAT) of Digital Symphony and its subsidiaries of RM4.5mil and RM4.5 mil for the 12 months after completion and the subsequent 12 months, respectively.
This transaction is expected to contribute positively to Catcha Digital's earnings in the future.
