KUALA LUMPUR: Cashless payment solutions provider Revenue Group Bhd has proposed to acquire 40% stake in Wannatalk Malaysia Sdn Bhd (WMSB) for RM5mil cash.
In a filing with Bursa Malaysia, Revenue Group said its wholly-owned subsidiary Revenue Harvest Sdn Bhd (RHSB) had entered into a share sale agreement with Tan Sze Hoo for the acquisition of 6,000 ordinary shares in WMSB, representing 40% equity interest in WMSB for RM5mil.
Upon completion of the proposed acquisition, WMSB will become a 40% owned subsidiary of RHSB and an indirect subsidiary of Revenue.
WMSB is principally engaged in the provision and development of facial recognition-centered products and services, AI-powered smart content repository, AI-powered big data mining and fraud detection software and AI-powered chatbot and messaging platform.
Revenue managing director and group CEO Eddie Ng Chee Siong said this acquisition would provide a niche for Revenue and further enhance the payment security feature, which is important in the payment industry, as well as to provide Revenue the technology and knowhow to embark on new biometrics payment technology.
“We are delighted to bring WMSB onboard and the acquisition will help Revenue to further develop value-added product offering to our customers.
“Besides that, the acquisition will enable Revenue to leverage on WMSB’s existing products and services to further expand its clientele and business, providing a more robust business to business to consumer solution,” he said in a separate statement.
Under the agreement, the vendor will provide Revenue with a profit guarantee of RM300,000 and RM500,000 for the financial year ending Dec 31, 2020 and 2021 respectively.
The acquisition is expected to be completed in October 2020.