KUALA LUMPUR: Catcha Digital Bhd’s wholly-owned subsidiary, iMedia Asia Sdn Bhd has entered into a share sale agreement to acquire a 60% interest in Drive 2 Digital Sdn Bhd (D2D) for RM16.2mil cash.
The cash consideration will be paid in three instalments over 24 months, based on achieving the expected profit after tax within this period.
The expected PAT is RM3.5mil for the first 12 months after the completion date and RM4.2mil for the following 12 months (months 13 to 24).
“This strategic acquisition marks Catcha Digital's expansion into the automotive digital media sector, specifically in Chinese and Malay language automotive content. This transaction is expected to contribute positively to Catcha Digital's earnings in the future,” it said in a statement.
According to Catcha Digital, D2D, co-founded in 2018 by chief executive officer Dannis Tan Boon Fhong and chief operating officer Jackie Wong Yong Wee, has been profitable since the start. It manages four key brands including Automachi, Auto123, Careta, and Mekanika.