PUC Bhd has agreed to acquire Alevate Capital Sdn Bhd and Alevate Solutions Sdn Bhd for RM200 million, aiming to enhance its fintech capabilities and expand its market presence.
10 June 2024 – PUC Bhd has entered into a heads of agreement to acquire the entire equity stakes in Alevate Capital Sdn Bhd and Alevate Solutions Sdn Bhd for RM200 million, a deal to be settled in cash and shares.
The vendors of the companies, Eatcosys Sdn Bhd, a wholly-owned subsidiary of Incite Innovation Sdn Bhd, and Tham Lih Chung, have agreed to the terms wherein PUC will initially settle RM100 million through the issuance of 800 million PUC shares at 12.5 sen per share.
An additional RM7.5 million in cash will be payable upon Alevate Capital and Alevate Solutions achieving a pre-tax profit of RM16 million from July 1, 2024, to June 30, 2025. The remaining balance is contingent on the companies reaching a further profit guarantee milestone of RM32 million in pre-tax profit from July 1, 2024, to June 30, 2026.
Alevate Capital, licensed by the Ministry of Housing and Local Government (KPKT), operates as a digital lender under the Moneylenders Act 1951. Alevate Solutions, on the other hand, specializes in technology solutions, operations optimization, and digital transformation.
PUC stated that these acquisitions will significantly enhance its capabilities by introducing a fintech vertical, complementing its current marketing technology and entertainment technology sectors.
Cheong Chia Chou, PUC’s Group Managing Director and CEO, remarked, “The acquisitions mark a significant step forward in our strategy to enhance our technology capabilities and market presence. By integrating Alevate’s fintech expertise, we are poised to deliver comprehensive solutions that cater to the evolving needs of our end users. The profit guarantee and expected revenue growth underscore our commitment to creating shareholder value.”
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