Catcha Digital Bhd announced on December 20 that iMedia Asia Sdn Bhd, a wholly-owned subsidiary of Catcha Digital, has entered into a share sale agreement to acquire a 60% interest in Drive 2 Digital Sdn Bhd (D2D), a Malaysian automotive digital media company, for a cash consideration of US$3.59 million.
This strategic acquisition marks Catcha Digital's expansion into the automotive digital media space, particularly in Chinese and Malay language automotive content. The deal is expected to contribute positively to Catcha Digital's future earnings.
D2D was co-founded by Dannis Tan Boon Fhong (CEO) and Jackie Wong Yong Wee (COO) in 2018 and has been profitable since its inception. It manages four automotive media brands; Automachi, Auto123, Careta and Mekanika.
According to Catcha Digital, the acquisition provides significant cross-selling opportunities between its existing advertiser base and D2D's customer base.Catcha Digital and its subsidiaries (Catcha Digital Group) will be able to offer D2D's automotive-centric solutions to its customers, while D2D can leverage Catcha Digital Group's digital advertising capabilities and extensive reach to enhance its offerings.
The proposed acquisition is in line with Catcha Digital's vision to build a leading digital group in ASEAN, targeting the region's fast-growing digital economy, which is expected to reach a GMV of US$263 billion by 2024 according to the Southeast Asia eEconomy Report 2023 by Google, Temasek and Bain & Company.