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Catcha Digital acquires 60 percent stake in Framemotion Studio for $8.4M

Malaysia-based digital media firm Catcha Digital Berhad has proposed to acquire 60 percent stake in digital media advertising solutions provider Framemotion Studio Sdn Bhd for MYR 37.32 million ($8.4 million).

Catcha Digital said in a statement on Friday that its wholly-owned subsidiary iMedia Asia Sdn Bhd (iMedia) has entered into a conditional share sale agreement to acquire a majority shareholding of 60 percent in Framemotion Studio.

FrameMotion is expected to deliver a profit after tax and minority interest (PATAMI) of no less than MYR 6.8 million ($1.53 million) for the 12 month period after date of completion of the sale and purchase of shares, and MYR 6.8 million ($1.53 million) for the period that is 13th to 24th months after the completion, respectively.

This strategic acquisition combines Catcha Digital’s digital solutions with FrameMotion’s production capabilities in immersive digital experiences and animation.

This transaction is expected to contribute positively to Catcha Digital’s earnings in the future.

FrameMotion, an integrated consultancy, specializing in creating, designing, and delivering immersive digital and animated experiences across Southeast Asia and other countries.

It has consistently delivered groundbreaking projects for a diverse roster of high-profile clients, such as Petronas, Gamuda, Sephora, L’Oréal, Maxis, OCBC and Samsung.

In 2023, FrameMotion also served as the co-organizer for the Van Gogh Alive exhibition, and also launched its own artificial intelligence (AI) driven multi-sensory experience, The Greatest Artist exhibition, which collectively attracted over 300,000 visitors.

FrameMotion has been consistently profitable in the last ten years and recorded a profit after tax of MYR 7 million ($1.58 million) in the financial year ended December 31, 2023.

“We are very excited about this acquisition and believe that integrating FrameMotion’s cutting-edge expertise with our wide network will enable us to offer highly innovative and integrated solutions to clients across the region,

“We can’t wait to push the boundaries of digital storytelling with the FrameMotion team,” said Patrick Grove, Chairman of Catcha Digital.

Jeand Pua Yin Chye, Co-founder and Chief Executive Officer of FrameMotion, said this deal with Catcha Digital is a game-changer for the company.

“Their acquisition not only validates our creative vision but also accelerates our ability to deliver world-class digital experiences,

“We look forward to integrating with Catcha Digital’s broad suite of digital solutions to elevate our offerings to clients of both parties,” he added.

According to the statement, the proposed acquisition also aligns with Catcha Digital’s vision to build the leading digital group in ASEAN, targeting the region’s fast-growing digital economy, valued at approximately MYR 1 trillion ($225 billion) according to Google, Temasek, and Bain & Company’s 2024 SEA e-Conomy report.

The group said it continues to seek strategic investments and proposed acquisitions that complement its existing segments while expanding its presence in the digital economy.

Catcha Digital is an investment holding company based in Malaysia, operates primarily in the digital media, advertising, and software sectors.

IMedia Asia Sdn Bhd is a digital media company that offers integrated advertising solutions to major brands across various industries in Malaysia.

Its digital media assets include OhMedia, Nara Media, Weirdkaya, Goody25, The Reporter, and Ittify.

Nexible Solutions Sdn Bhd, a subsidiary under the software sector, provides business-to-business software products to its customers.

Its flagship product, OutPerform, is an artificial intelligence-powered sales automation software that enables clients to manage new leads and customer relationships.

https://theedgemalaysia.com/node/716578

KUALA LUMPUR (June 24): Digital media company Catcha Digital Bhd (KL:CATCHA) said on Monday that it will co-found KS Lagi, a new digital media business scheduled to launch in the second half of this year.

The company has inked a joint venture agreement with the founders of Keluar Sekejap Sdn Bhd, Khairy Jamaluddin (KJ) and Shahril Hamdan. KJ is the former health minister while Shahril is the former information chief of United Malays National Organisation (Umno).

In a statement, Catcha Digital said the company intends to assume the commercial and business responsibilities for the existing Keluar Sekejap’s business and KS Lagi. Additionally, KS Lagi will create and distribute new media content across Catcha Digital’s existing network that reaches about 20 million Malaysians every month.

Keluar Sekejap claims to be a fast-growing media brand centred around thought-provoking conversations and has achieved tremendous success in the digital media space since its launch in 2023. It has amassed over 1.4 million subscribers and followers across its social media platforms, and over 39 million views on YouTube.

“We are thrilled to partner with KJ and Shahril to co-found KS Lagi,” said Catcha Digital chairman Patrick Grove.

“Across Catcha Digital and Keluar Sekejap’s platform we are already reaching the vast majority of Malaysians every month, and we see our audience yearning for a new approach to content and we will be a key part of this.

This collaboration aligns with our mission to build a leading profitable digital group in Southeast Asia, as we continue to pursue strategic partnerships, investments, and acquisitions that are accretive to our earnings per share,” Grove added.

In March last year, Catcha Digital completed its acquisition of a 100% stake in iMedia Sdn Bhd, which specialises in providing digital media advertising solutions to clients in Malaysia.

About four months later, Bursa Malaysia Securities removed the company from its cash company status under Rule 8.03 and Guidance Note 2 (GN2) of the ACE Market Listing Requirements.

On the financial front, Catcha Digital recorded its fourth consecutive profitable quarter. Prior to this, the company has been in straight net losses since 1QFY2019.

The company’s net profit more than doubled to RM1.47 million for the first quarter ended March 31, 2024 (1QFY2024), as compared to RM399,000 in the previous year’s corresponding quarter.

Shares of Catcha Digital declined 1.5 sen or 3.4% to close at 43 sen on Monday’s closing bell, giving it a market capitalisation of RM149.71 million.

Discover the inspiring journey of Eric Tan, the Group CEO of Catcha Digital Berhad who transformed a substantial amount of capital into a thriving business empire! In this video, we delve into the remarkable story behind his success, exploring the challenges he faced, the strategies he employed, and the lessons he learned along the way.

https://www.bfm.my/podcast/morning-run/the-breakfast-grille/catcha-digital-symphony-marketing-billboard-imedia-advertising-gn2

Digital media company Catcha Digital Bhd has been in rapid growth through various acquisitions. We ask CEO, Eric Tan how these will contribute positively to the group’s earnings and overall business in the future as well as their recently completed regularisation plan from exiting GN2 status.

Produced by: Moh Heng Ying

Presented by: Philip See

https://theedgemalaysia.com/node/691849

KUALA LUMPUR (Nov 28): Digital media company Catcha Digital Bhd is planning to acquire a 51% equity interest in digital agency DS Services Sdn Bhd, more commonly known as Digital Symphony, for RM21.167 million.

In a press statement on Tuesday, Catcha Digital said it has inked a letter of intent for the acquisition and that the consideration payment will be split into two tranches over two years, payable upon Digital Symphony achieving a profit guarantee of audited profit after tax of RM4 million for the first year post-acquisition, and RM4.3 million for the second year.

“The acquisition is expected to materially increase Catcha Digital’s earnings per share,” it said.

It plans to fund the purchase via a combination of internal funds, debt financing and equity financing.

Digital Symphony is a Malaysia-based data-driven digital agency that operates in Malaysia and Singapore. It provides differentiated performance marketing solutions to clients using its proprietary software and analytics tool.

Founded in 2014 by Kuhan Kumar Palaniappan, the company serves a broad range of enterprise clients with a focus on the property development sector, said Catcha Digital.

“Recognised broadly in Malaysia as one of the leaders in their field, Digital Symphony will form a key part of Catcha Digital’s strategy going forward. I am confident [in] Kuhan and his team, and I believe we can grow hand in hand. We look forward to working with the Digital Symphony team to bring the business to greater heights,” said Catcha Digital chairman, Patrick Grove.

Catcha Digital’s shares closed up 0.5 sen or 1.12% to 45 sen on Tuesday, giving the company a market capitalisation of RM158.44 million.

https://theedgemalaysia.com/node/687249

KUALA LUMPUR (Oct 23): Catcha Digital Bhd (Catcha) has appointed the founder of its recently-acquired company — Ittify Sdn Bhd, Tan Guan Sheng as its head of innovation, the group said in a statement on Monday.

The appointment is in line with the group’s efforts to spearhead its Artificial Intelligence (AI) initiatives related to digital media.

“We are thrilled to announce Guan as our Head of Innovation and look forward to working with him to unlock the power of AI for our group.

“We believe this can create significant value for our customers, allowing us to offer even better marketing solutions to all our clients,” Catcha Digital CEO Eric Tan said.

To recap, earlier this month, the group announced the acquisition of the remaining 49% equity interest in Ittify not already owned by the group for a cash consideration of RM3.43 million.

It also announced the acquisition of 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.

Meanwhile, Guan said Catcha Digital is committed to pushing the boundaries of what AI could contribute to the company.

Notably, Guan also acquired 1.14 million shares in Catcha, representing approximately 0.32% of Catha’s total outstanding shares as at October 16, 2023.

Shares in Catcha closed two sen or 4.35% lower at 44 sen, giving it a market capitalization of RM154.92 million.

Since the beginning of the year, the stock has soared more than double from merely 20 sen in early January.

https://www.thestar.com.my/business/business-news/2023/10/09/catcha-digital-announces-two-digital-media-purchases

KUALA LUMPUR: Catcha Digital Bhd‘s wholly-owned subsidiary iMedia Asia Sdn Bhd will be making equity acquisitions in two companies that are expected to improve the profitability of the group.

In a statement, the group said it will acquire the remaining 49% equity interest of Ittify Sdn Bhd it does not already own for RM3.43mil, paid in two tranches over two years.

Ittify is an influencer platform in Malaysia, which served more than 100 brands with seven thousand influencers on its platform.

Catcha Digital will also acquire 30% equity interest in Headline Media Sdn Bhd for RM1.24mil, paid in two tranches two years, with an option to acquire another 50% equity interest in the company within 36 months.

Headline Media owns and operates WeirdKaya, one of the fastest-growing English language websites in Malaysia, as well as emerging Chinese and Malay language sites, WeirdKaya BM, LokLokWords and EzLokal.

“We expect these acquisitions to contribute positively to our earnings and overall business in the future.

“Our mission is to build a leading digital group in Southeast Asia and we will continue to pursue investments and acquisitions that are earnings accretive,” said Patrick Grove, chairman of Catcha Digital.

Catcha Digital CEO Eric Tan said the addition of Headline Media will strengthen its English language network and offer a more comprehensive advertising solution to its clients.

He added that Ittify continues to grow, with a profit after tax of about RM530,000 in the six months ended June 30, 2023.

https://www.digitalnewsasia.com/business/catcha-digital-raises-us65-mil-growth-and-expansion

Catcha Digital announced that it had raised US$6.5 million (RM29.7 million) from the Rights Issue exercise to grow and expand its business. This is the final step in its regularisation plan, and its GN2 status is now expected to be lifted.

Catcha Digital is a Malaysia-based investment holding company in the digital media, advertising and software industries.

“We can now devote our attention to building, growing and scaling the company to greater heights,” said Patrick YKin Grove (pic), Chairman of Catcha Digital.

“The company is in a strong position to accelerate its growth plans and realise our vision. We aim to attract digital and software companies to join us and create sustainable value for all stakeholders,” said Eric Tan (pic), CEO of Catcha Digital.

On 6 July, Catcha Digital launched a new business unit called “i-Gov”. It is focused on developing technology solutions and software for the Malaysian government and the public sector. 

On 28 June, Catcha Digital announced that its wholly-owned subsidiary, iMedia, hit a record profit before tax of RM10.28 million in FYE 2022, representing approximately 69% year-on-year growth.

iMedia Asia is a digital media company that provides integrated advertising solutions to brands in Malaysia’s consumer goods, retail, property, entertainment and other industries.