CTOS (5301) CTOS DIGITAL BERHAD buys Juris Tech stake for over RM205mil, its largest acquisition

CTOS (5301) CTOS DIGITAL BERHAD buys Juris Tech stake for over RM205mil, its largest acquisition

CTOS Digital Bhd is acquiring a 49 per cent stake in fintech specialist Juris Technologies Sdn Bhd (JurisTech) for RM205.8 million cash.

KUALA LUMPUR: CTOS Digital Bhd is acquiring a 49 per cent stake in fintech specialist Juris Technologies Sdn Bhd (JurisTech) for RM205.8 million cash.

CTOS said this was its largest ever acquisition since its inception.

The company today said it had entered into a conditional share sale and purchase agreement to buy the 49.0 per cent stake from Natsoft (M) Sdn Bhd, the holding company controlled by JurisTech's founders.

CTOS deputy group chief executive officer Eric Hamburger said the acquisition would allow both companies to complement each other's strength to bring a stronger end-to-end digital lending solution proposition to the market.

"Our partnership is also well positioned to address the new emerging opportunities in the digital lending space, as we seek to co-develop various new and unique propositions to cater to the needs of these customers, including digital banks, peer-to-peer, buy-now-pay-

later and micro/pay-day loans providers.

"There will also be many customer synergies, leveraging on the relationship with our respective customer bases to cross-sell each company's solutions and elevate our existing solutions.

"This would help both companies to penetrate new clientele as well as increase the wallet share of existing customers," he said in a statement today.

JurisTech is a Malaysian-based fintech company that specialises in enterprise- class software solutions for banks, financial institutions, insurance, and telecommunication companies.

The company provides a complete suite of integrated software solutions covering end-to-end credit lifecycle management.

JurisTech holds an entrenched market position in Malaysia, with presence in countries such as Singapore, Australia, United Arab Emirates and Brunei.

CTOS expects the acquisition to be completed by the first quarter of 2022.

To fund the acquisition, CTOS Digital plans to undertake the private placement of new shares, representing up to 10.0 per cent of the current 1.1 billion outstanding shares, pending shareholders' approval.

The company said it would explore bank borrowing options if necessary.

https://www.nst.com.my/business/2021/12/757585/ctos-buys-juris-tech-stake-over-rm205mil-its-largest-acquisition