Malaysian digital media firm Catcha Digital Berhad has on Friday announced that it has acquired a 60 percent interest in Drive 2 Digital Sdn Bhd (D2D) for a cash consideration of MYR 16.2 million ($3.59 million) to strengthen its position in automotive digital media.

Catcha Digital said in a statement that its wholly-owned subsidiary iMedia Asia Sdn Bhd (iMedia) has entered into a share sale agreement to the acquisition.

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.

The cash consideration is payable in three tranches across 24 months and is tied to the achievement of the expected profit after tax (PAT) over the period of 24 months after completion of the sale and purchase of shares date.

This is broken down into expected PAT of MYR 3.5 million ($780,000) and MYR 4.2 million ($930,000) for the period of 12 months after completion date, and the period from 13 to 24 months after completion date, respectively.

D2D was co-founded by Dannis Tan Boon Fhong (Chief Executive Officer) and Jackie Wong Yong Wee (Chief Operating Officer) in 2018 and it has been profitable since its inception.

It is one of the leading automotive digital media companies in Malaysia, managing four prominent automotive media brands: Automachi, Auto123, Careta, and Mekanika.

The network has gained significant traction among automotive enthusiasts and brands, with a combined monthly reach of approximately 1 million website unique visitors, 10 million web visits, 32 million Facebook post reach, and 45 million video views across Instagram, TikTok and YouTube.

This audience reach complements Catcha Digital’s existing monthly reach of 20 million across its websites and social media channels.

The acquisition provides significant cross-selling opportunities between Catcha Digital’s existing advertising client base and D2D’s clientele.

Catcha Digital and its subsidiaries will be able to offer D2D’s automotive-focused solutions to its clients while D2D can leverage Catcha Digital Group’s comprehensive digital advertising capabilities and broad reach to enhance its offerings to automotive brands.

This synergistic relationship is expected to accelerate growth for both entities.

“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.

Dannis Tan Boon Fhong, Chief Executive Officer and Co-Founder of D2D, said joining forces with Catcha Digital represents an exciting new chapter in D2D’s growth story.

“Since 2018, we have built Malaysia’s leading automotive media network across Chinese and Malay segments, reaching over 60 million views monthly across its platforms,

“This partnership with Catcha Digital will accelerate our expansion plans in multiple ways – from growing our existing digital media brand to strengthening our influencer marketing capabilities, and potentially expanding into the English language market,” he said.

He noted the ability to tap Catcha Digital’s existing clientele will also be a key lever of value creation for the firm.

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 ($220 billion) according to Google, Temasek, and Bain & Company’s 2023 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 beyond digital media.

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

The group’s wholly-owned subsidiary, iMedia Asia Sdn Bhd, is a digital media company that provides integrated advertising solutions to major brands in the fast-moving consumer goods, retail, property, entertainment and other industries in Malaysia.

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