60 percent stake in Drive 2 Digital acquired by Catcha Digital for $3.59 M
In an effort to bolster its position in the automotive digital media market, Malaysian digital media company Catcha Digital Berhad stated on Friday that it has paid MYR 16.2 million ($3.59 million) in cash for a 60% stake in Drive 2 Digital Sdn Bhd (D2D).
In a statement, Catcha Digital said that iMedia Asia Sdn Bhd (iMedia), its wholly-owned subsidiary, had signed a share sale agreement for the purchase.
With this calculated purchase, Catcha Digital enters the automotive digital media market, specializing in automotive content in Chinese and Malay.
Future earnings for Catcha Digital are anticipated to benefit from this purchase.
In accordance with the attainment of the anticipated profit after tax (PAT) during the 24 months following the completion of the sale and purchase of shares date, the cash consideration is payable in three installments over the course of 24 months.
For the period 12 months after the completion date and the period 13 to 24 months after the completion date, the estimated PAT is MYR 3.5 million ($780,000) and MYR 4.2 million ($930,000), respectively.
In 2018, Dannis Tan Boon Fhong, the Chief Executive Officer, and Jackie Wong Yong Wee, the Chief Operating Officer, co-founded D2D, which has been profitable ever since.
Managing four well-known automotive media brands—Automachi, Auto123, Careta, and Mekanika—it is one of Malaysia’s top automotive digital media firms.
With a combined monthly reach of roughly 1 million unique website visitors, 10 million online visits, 32 million Facebook post reach, and 45 million video views across Instagram, TikTok, and YouTube, the network has become quite popular with auto enthusiasts and brands.
Catcha Digital’s current monthly reach of 20 million across its websites and social media channels is enhanced by this audience reach.
Significant cross-selling opportunities exist between D2D’s clientele and Catcha Digital’s current advertising clientele as a result of the acquisition.
While D2D can take advantage of Catcha Digital Group’s extensive reach and full range of digital advertising capabilities to expand its offers to automotive companies, Catcha Digital and its subsidiaries will be able to provide its clients with D2D’s automotive-focused solutions.
Growth for both businesses is anticipated to be accelerated by this synergistic relationship.
“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 Patrick Grove, Chairman of Catcha Digital.
“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.
