Malaysia’s digital media company, Catcha Digital, is buying 92.5% of banking software company Theta Service Partner for MYR 35 million ($7.9 million).
Catcha Digital announced on Monday that its subsidiary, Catcha Theta, has signed an agreement to buy the stake. This move is part of Catcha Digital’s plan to expand into the banking software industry, focusing on loan origination software.
The payment for the acquisition will be made in four parts: MYR 5.9 million ($1.33 million), MYR 6.6 million ($1.49 million), MYR 11.2 million ($2.53 million), and MYR 11.3 million ($2.55 million).
Read also – Equinix has Issued its First Green Bonds in Singapore, Raising $375Million to Support Sustainability Efforts
This deal is expected to boost Catcha Digital’s earnings. Theta provides loan origination software for financial institutions with its main product, ORIGINS. This software helps manage lending operations for retail, small and medium-sized businesses (SMEs), and commercial sectors.
The software includes features like automated credit checks, support for multiple products, workflow automation and compliance with regulations, allowing financial institutions to handle their lending processes while staying within legal requirements.
Patrick Grove, Chairman of Catcha Digital said, “This acquisition represents a strategic entry into the banking software sector and is well-aligned with our vision of building a comprehensive digital technology group What particularly impressed us about Theta Group was their deep domain expertise in loan origination systems, evidenced by their long-standing relationships with major financial institutions across multiple markets,”.
Leong Kwok Hung, Managing Director of Theta said, “Joining forces with Catcha Digital strengthens our ability to capture the significant opportunities we see in the banking software sector, He noted that over the firm’s past 25-year journey, it has witnessed firsthand how critical robust loan origination systems have become for financial institutions’ operations, alongside the tailwind presented by tighter regulation amongst the banking industry globally. The market is now demanding more sophisticated solutions, particularly around artificial intelligence and cloud capabilities, Catcha Digital’s strategic support and regional network will be instrumental as we accelerate our next phase of growth,”.
The planned acquisition fits Catcha Digital’s goal to expand into the information technology sector and become a leading digital group in ASEAN.
About Catcha Digital
Catcha Digital Berhad is a Malaysian investment company that runs businesses in digital media, advertising, and software. Its fully-owned subsidiary, iMedia Asia Sdn Bhd, is a digital media company that offers advertising solutions to big brands in industries like FMCG, retail, property, and entertainment in Malaysia.
