Payment solutions provider Revenue Group plans to acquire a controlling stake of 51% in Innov8tif Holdings from glove maker Hong Seng for RM36 million in a total cash purchase.
Innov8tif Holdings is an investment holding company that owns Innov8tif Solutions Group and Xendity which are collectively known as the Innov8tif Group. The group focuses on AI-powered digital identity solutions and claims to have over 70% market share in Malaysia.
Hong Seng had previously acquired the 51 percent equity interest in Innov8tif Holdings for RM30.85 million back in January this year.
According to the Bursa Malaysia filing, Innov8tif Group’s digital ID technology and solutions will help to complement and enhance the existing businesses of Revenue and its subsidiaries.
Moreover, with the combined larger market shares of both Innov8tif Solutions Group and Xendity, the group will have a better appeal among its prospective customers due to the increased service and product efficiencies and potentially more cost-effective solutions offered.
Revenue added that Innov8tif Group will also be in a position to “tap into the global trend of digitalisation to expand its footprints to other markets in the ASEAN region”.
The news comes on the heels of a major revamp of Revenue Group’s boardroom with mass resignations and new appointments being made back-to-back in March this year.
Group CEO Danny Leong Kah Chern was also reported to be stepping down officially on 23 May but Revenue released a statement saying that he would be reconsidering his decision. An official announcement has yet to be made.
