Maxis acquires MyKRIS Asia for up to US$37.9 mil in its largest acquisition to date
By Digital News Asia October 14, 2021
- Maxis strengthens position as Malaysia’s leading converged solutions provider
- Enhances capabilities anchored by Maxis Programmable Network, foundation for 5G
[Ed: Article updated with MyKRIS audited revenue and share price chart since acquisition announced.]
Reinforcing its leading position in the Enterprise solutions market, Maxis has announced its largest acquisition to date of MyKRIS Asia Sdn Bhd, a Malaysian-based company specialising in Managed Network and Security Services with end-to-end field delivery and support, for up to US$37.9 million (RM157.5 million). According to MyKRIS' announcement to Bursa Malaysia, the all cash deal consists of a base consideration of up to US$27.7 million (RM115 million), and subsequent payments of up to US$10.2 million (RM42.5 million) upon certain revenue targets being achieved. It's audited revenue from 2019 to 2021 was RM39 million, RM44.7 million and RM41.8 million with most of its business coming from the Klang Valley.
MyKRIS Asia is the main operating subsidiary of MyKRIS International Bhd, a holding company listed on Bursa LEAP market. The acquisition, which primarily includes adding a pool of experts comprising 70 qualified engineers and support team, will further enhance Maxis’ capabilities anchored by Maxis Programmable Network and represents the foundation for future 5G readiness from Private Network to 5G Fixed Wireless Access.
With 20 years experience and significant reputation in the local Managed Network Services market, MyKRIS Asia brings a strong team of certified specialists, diverse customer base, network assets, and top-tier global and local partnerships. The integration complements Maxis’ MEF 3.0 Certified Managed Network with Hybrid Network capabilities, which provides the best of both wired and wireless connectivity networks for businesses and sustains optimum connectivity experience. Coupled with MyKRIS Asia’s Managed Network Security capabilities, this allows improvement in service agility, time to market, and flexibility of solution in delivering Managed Network Services to enterprises, which are increasingly critical in a fast-changing IT environment. MyKRIS share price dropped 30% on the day the deal was announced, from RM0.67 to RM0.47 and has not recovered since.
“Our latest acquisition reinforces Maxis’ position as the leading converged solutions provider in Malaysia. Importantly, it represents our commitment to investing in the nation and supporting the digital economy, as well as enable businesses to Always Be Ahead,” said Gokhan Ogut (pic), Chief Executive Officer, Maxis.
“Managed network and security services are vital components for digital transformation strategies. With MyKRIS Asia coming onboard, we look forward to expanding our suite of network solutions and technical capabilities built on top of our best-in-class Maxis Programmable Network,” said Paul McManus, Maxis’ Chief Enterprise Business Officer.
MyKRIS Asia’s team of technical specialists who are certified by global technology providers bring with them competencies in delivering end-to-end services, including design and consulting, implementation, testing and audit, as well as monitoring and incident management. This is augmented with its 24x7 Security & Network Operating Centre.
“Since our inception, MyKRIS Asia has grown its extensive customer base across multiple industries such as manufacturing, hospitality, aviation and services to become a reputable managed network service provider today. We are pleased to be integrating with Maxis to empower more Malaysian businesses to leverage industry-leading technologies and help them accelerate their digital aspirations,” said Chew Choo Soon, Executive Chairman and CEO of MyKRIS Asia.
The latest acquisition of MyKRIS Asia follows a slew of acqui-hires by Maxis in the last two years since Maxis announced its ambition to be Malaysia’s Leading Converged Solutions Provider, including Infrastructure Consulting & Managed Services Sdn Bhd and Peering One Sdn Bhd for end-to-end professional and managed cloud services, and Audeonet (M) Sdn Bhd for Voice and Unified Communications solutions.
The acquisition of MyKRIS Asia is expected to complete by Q1 2022, subject to the fulfilment of pre-agreed deal conditions including approvals by MyKRIS Asia shareholders.