Friday 24 May 2024
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KUALA LUMPUR (Oct 9): Catcha Digital Bhd has announced the acquisition of two digital media companies in a bid to complement its mission to build a leading digital group in Southeast Asia.

In a bourse filing, Catcha said it is investing RM3.43 million to buy the remaining 49% stake in Ittify Sdn Bhd, a leading influencer platform in Malaysia which serves more than 100 brands with 7,000 influencers on its platform. The group already owns the other 51% stake in Ittify.

The second acquisition involves Catcha acquiring a 30% equity interest in Headline Media Sdn Bhd for RM1.24 million, with an option to acquire another 50% stake within 36 months.

Headline Media owns and operates WeirdKaya, an English language website in Malaysia, as well as emerging Malay and Chinese language sites, WeirdKaya BM, LokLokWords and EzLokal.

Catcha chairman Patrick Grove expects the acquisitions to contribute positively to the group’s earnings and overall business in the future.

Its chief executive officer Eric Tan added that the group looks forward to growing the profitability of both businesses further in the months and years to come.

“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,” said Tan.

Both acquisitions are expected to be completed in the fourth quarter of this year, and the purchase consideration will be funded via its internal cash balances, said Catcha Digital. 

Catcha Digital’s share price closed down half a sen or 0.98% to 50.5 sen on Monday, bringing the group a market capitalisation of RM178 million.

Edited ByS Kanagaraju
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