92.5 percent stake in banking software firm Theta Service Partner acquired by Catcha Digital for $7.9 M
Catcha Digital, a digital media company based in Malaysia, is paying MYR 35 million ($7.9 million) to acquire a 92.5 percent stake in Theta Service Partner, a banking software company.
A conditional share sale agreement for the acquisition has been reached by Catcha Digital’s wholly-owned subsidiary, Catcha Theta, the company announced in a statement on Monday.
Catcha Digital is expanding into the banking software solutions industry, specifically in loan origination software, with this strategic acquisition.
Four tranches of 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) individually make up the acquisition.
Payments for the second, third, and fourth tranches are contingent upon an anticipated profit after tax of at least MYR 3.5 million ($789,000), MYR 4 million ($902,000), and MYR 5 million ($1.12 million) for the fiscal year that ends on December 31, 2024, FYE 2025, and FYE 2026, respectively.
Theta and its affiliates reported a profit after tax (PAT) of MYR 3.4 million ($768,000) in FYE 2023.
The earnings of Catcha Digital are anticipated to increase as a result of this transaction.
Through its flagship product ORIGINS, a lending solution that simplifies operations across retail, small and medium-sized enterprises (SME), and commercial segments, Theta offers loan origination software to financial institutions.
Financial institutions can process and manage their lending operations while adhering to intricate regulatory requirements thanks to the software’s features, which include automated credit assessment, multi-product support, workflow automation, and regulatory compliance capabilities.
“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,” said Patrick Grove, Chairman of Catcha Digital.
He asserts that Theta offers strong prospects for long-term, sustainable growth because of its track record of providing mission-critical software solutions to its loyal clients and its highly skilled management team.
For its operations throughout the region, Theta has established long-term partnerships with some of Southeast Asia’s biggest banking groups, including one of the biggest banks in Singapore, one of the largest banks in Malaysia, and a well-known Pan-Asian bank with its headquarters in Taiwan. It is noteworthy that Theta has gained significant traction among major financial institutions worldwide.
As a partner in the banking technology industry for the past 20 years, the company has helped bank clients process millions of loan applications in several countries, including Singapore, Malaysia, the Philippines, Indonesia, Taiwan, India, Hong Kong, Canada, the United States, and the United Kingdom, while also helping them drastically cut down on end-to-end lending process times.
