Malaysian telecommunications group Axiata Group Bhd has acquired the Southeast Asian operations of Komli Media, a digital advertising firm, for $11.25 million.
In an announcement on Bursa Malaysia, the group said its subsidiary Adknowledge reached an agreement with Komli Asia for the acquisition.
The business being acquired include, Mumbai-headquartered Komli Media’s operations in the Southeast Asia markets – Singapore, Thailand, Vietnam, Philippines, Indonesia, Malaysia – and Hong Kong.
The rationale behind the acquisition, according to Axiata, is that it allows them to “skip past the formative stage of its business plan and scale up its presence and operations in Southeast Asian region.”
It saw Komli’s geographical spread and diversified revenue streams as “a strong strategic fit across digital advertising verticals such as social, video, display and mobile.”
Adknowledge Asia Pacific is an 80 per cent subsidiary of Axiata Digital Advertising, which is a wholly owned by Axiata Digital Services, which in turn is a wholly owned subsidiary of Axiata Group Bhd. Axiata said in its filing that the acquisition “does not have any effect on the issued and paid-up share capital of Axiata and will not have any material effect on the earnings, gearings and net assets of the Axiata Group for the year financial ending December 31, 2015.”
Under the deal, $11.25 million shall be paid in cash. The purchase consideration shall be adjusted with the difference between the target working capital of Komli Asia Group against its working capital which shall be determined based on the aggregate value of Komli Asia Group’s current assets less its current liabilities.