Green Packet shareholders approve US$10mil acquisition of eKYC firm Xendity

  • Shares issued in 3 tranches over 3 financial years, based on targets
  • Projected 15% CAGR with projected US$25mil revenue over 5 years

Green Packet shareholders approve US$10mil acquisition of eKYC firm Xendity

Malaysian technology company Green Packet Bhd completed the acquisition of the entire equity in Xendity Pte Ltd following shareholders’ approval at an Extraordinary General Meeting (EGM) held yesterday.

The resolution for the allotment and issuance of the new ordinary shares in Green Packet was carried as part of the settlement for the purchase consideration of up to US$10 million (RM40.5 million). Of this sum, US$1.5 million (RM6.1 million) will be satisfied in cash while the remaining amount of up to US$8.5 million will be satisfied via the consideration shares approved at the EGM yesterday. The consideration shares will be allotted and issued to the vendors of Xendity in three tranches over three financial years, based on specified performance targets.

 [US$1 = RM0.247]

Founded in Singapore in early 2017 by Vincent Wong Horng Yuen, a graduate of KL-based Asia Pacific University of Technology & Innovation (APU), Xendity is a strategic acquisition with its e-Know Your Customer (e-KYC) software complementing Green Packet’s enterprise products and solutions and expected to have a material impact to the top and bottom line of Green Packet’s digital operations.

In late 2018, Xendity in partnership with CTOS, Malaysia’s leading credit reporting agency, participated in Bank Negara Malaysia’s e-KYC Financial Technology Regulatory Sandbox programme. Subsequently, Xendity entered into an agreement to provide e-KYC solutions to both CTOS and non-CTOS customers.                                

Green Packet shareholders approve US$10mil acquisition of eKYC firm Xendity“With Xendity’s partners and strong business pipeline within Malaysia, Indonesia and Thailand, we project a 15 per cent compounded annual growth rate (CAGR) with over RM100 million revenue over the next five years and a healthy profit margin,” said CC Puan (pic, right), Group Managing Director and CEO of Green Packet.

In recent years, Green Packet has transformed into a technology company focused on digital solutions with five strategic business pillars to drive its business growth. These are namely Digital Solutions for consumers and SMEs; Digital Platforms for enterprises, including cloud services and data centres; Smart Devices; Smart City & Urban Tech for development of technology-enhanced property products and delivery of customised property technology solutions; as well as strategic early- and late-stage investment via its KipleX and Green Packet Capital entities. Xendity will remain as an operating company under Green Packet’s Digital Platforms business unit. 

Green Packet’s Digital Platforms unit diversifies the business into cloud computing, with the ability to offer end-to-end solutions across the entire cloud computing stack, from infrastructure to software. e-KYC services will be an important component of its cloud computing product offerings such as Platform-as-a-Solution (PaaS) as it allows users to digitally verify the identity of their customers and securely onboard them to conduct online transactions, among others.

This online customer onboarding capabilities through the e-KYC software is not only essential in the banking and financial services sector, but it is necessary to most businesses that requires online customer identity verification. The adoption of e-KYC technology is in line with Bank Negara Malaysia’s efforts to facilitate greater digital offerings of financial services which is expected to pave the way for greater innovation in the financial sector, including end-to-end offering of digital financial services for customers.

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