KUALA LUMPUR (Dec 20): Catcha Digital Bhd (KL:CATCHA), formerly known as Rev Asia Bhd, is acquiring a 60% stake in Drive 2 Digital Sdn Bhd (D2D) for RM16.2 million, cash, marking its entry into the automotive digital media sector, with a focus on Chinese and Malay language automotive content.

The acquisition, payable in three tranches over 24 months, is contingent upon D2D achieving profit targets of RM3.5 million in the first 12 months following the deal's completion and RM4.2 million in the subsequent 12 months.

D2D, co-founded in 2018 by chief executive officer Dannis Tan Boon Fhong and chief operating officer Jackie Wong Yong Wee, manages several automotive media brands, including Automachi, Auto123, Careta, and Mekanika. These brands collectively garner about one million unique online visitors monthly and achieve over 45 million video views across TikTok, Instagram, and YouTube.

“This acquisition marks a natural extension for Catcha Digital’s digital media arm to enter the automotive content category. D2D has built an impressive track record in Chinese and Malay automotive content, with strong relationships across major brands in the automotive sector such as Mercedes-Benz, Mazda, Toyota, Honda, BYD, Continental, and Michelin,” said Catcha Digital chairman Patrick Grove, in a statement on Friday. 

“With the automotive industry increasingly shifting towards digital channels, the combination of D2D's automotive expertise and iMedia's digital capabilities creates compelling opportunities. Together, we are uniquely positioned to redefine how automotive brands connect with consumers across Asean,” he added. 

The acquisition is expected to generate cross-selling opportunities between Catcha Digital and D2D’s existing clientele. Catcha Digital anticipates that D2D will benefit from its digital advertising capabilities, while the enlarged group will gain access to D2D’s specialised automotive-focused media solutions.

The proposed acquisition is expected to be completed by the first half of 2025.

At Friday's noon market break, Catcha Digital's shares were down two sen or 5.41% at 35 sen, giving the company a market capitalisation of RM123.2 million.