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.

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