KUALA LUMPUR (Aug 25): CTOS Digital Bhd has announced the acquisition of two fast-growing credit scoring companies in the Philippines and Indonesia for US$6.34 million (RM29.42 million).
The group said it is acquiring the entire 100% stake in Philippine-based Finscore Inc for RM27.22 million, and an 80% stake in PT Prime Analytics Indonesia for RM2.2 million.
This will allow CTOS to expand its presence in the Philippines and Indonesia, and establish a leading alternative data platform, said the group in bourse filings on Friday (Aug 25).
CTOS aims to leverage the two companies' "strong market presence and expertise to provide an unparalleled suite of credit-related products and services" in the two countries, added the group.
"This strategic move aligns perfectly with our vision of advancing financial inclusion and bringing superior credit solutions to individuals and businesses throughout the Asean region," said CTOS group chief executive officer Erick Hamburger in a statement.
“These markets have tremendous potential for loan growth, and by catering to their needs, we aim to empower individuals, boost entrepreneurial endeavors and stimulate economic development,” he added.
CTOS said it has entered into a sale and purchase agreement with the shareholders (UBX Private Ltd and Vegueros Ltd) and option sellers (Dimitrov Angel Vladimirov and Christo Darinov Georgiev) of Fintech Platform Ventures Pte Ltd, the holding company of Finscore.
The group also signed an agreement with CIBI Holdings Pte Ltd for the purchase of an 80% stake in Alt Decisions, the holding company of Prime Analytics.
CIBI is a wholly-owned subsidiary of Creador Management V Ltd. This exercise is deemed a related party transaction as Jane Vine Sdn Bhd is a major shareholder of CTOS, which is a subsidiary of Creador V LP, a fund managed by Creader Management.
Both acquisitions will be funded by bank financing, said CTOS.
The group said Fintech posted a net loss of US$637,650 in 2022 versus US$720,557 a year earlier, as revenue rose to US$4.1 million from US$2.32 million.
Alt Decisions, meanwhile, posted a net loss of US$2,987 with net assets of US$462,013.
CTOS had reported a net profit of RM37.7 million for the six months ended June 30, 2023, compared with RM34.96 million for the same period last year. Revenue climbed 36.6% to RM121.84 million from RM89.19 million.
CTOS shares finished down one sen or 0.72% at RM1.37 on Friday, valuing the group at RM3.16 billion.
This article has been updated to correct Fintech's net loss and revenue figures. The error is regretted.