KUALA LUMPUR (July 9): LGMS Bhd (KL:LGMS) has entered into a deal to acquire a 27% stake in an IT services firm for RM22.68 million cash, to strengthen its regional footprint and product offerings in the cyber security domain.
The cyber security services group is buying said stake in Antarex Holdings Sdn Bhd from existing shareholders Tan Soon Huat and Tan Pek Loon, according to a bourse filing on Wednesday.
The proposed acquisition follows a memorandum of understanding between the two parties entered into on April 9, which outlined potential “collaboration in product development and cross-selling of commercial cyber security products and services in Malaysia and regionally”.
LGMS said the acquisition is contingent on Antarex completing its internal reorganisation, including the full acquisition of Singapore-based Antarex Cyber Pte Ltd and IPDC Solutions Pte Ltd.
“LGMS will be able to leverage on Antarex’s regional market presence to introduce its award-winning cyber security solution, StarSentry to a broader client base across Southeast Asia,” the group said.
The deal also comes with a profit guarantee of RM24.5 million in cumulative profit after tax for the enlarged Antarex group over three financial years from FY2026 to FY2028 — RM7 million in FY2026, RM8.5 million in FY2027 and RM9 million in FY2028.
LGMS said the purchase consideration will be funded through internally generated funds. As at March 31, the group’s cash holdings amounted to RM69.23 million, while its borrowing stood at RM740,000, according to its latest financial statement.
The group noted that the acquisition comes as it prepares for a transfer from the ACE Market to the Main Market of Bursa Malaysia, which is expected to be completed by the fourth quarter of this year.
Shares in LGMS closed unchanged at 90 sen on Wednesday, giving the group a market capitalisation of RM410.40 million. The counter has dropped over 28% year to date.