Zen Tech International Bhd (ZenTech) acquires a 70% stake in Alpha Fintech Sdn Bhd for RM10 million, marking its entry into the payment gateway services market. The acquisition, accompanied by a profit guarantee from Alpha Fintech’s founder, is expected to enhance ZenTech’s revenue and profitability, solidifying its presence in the technology network industry.
3 April 2024 – Zen Tech International Bhd (ZenTech) has finalized a deal to acquire a 70% stake in payment gateway provider Alpha Fintech Sdn Bhd for RM10 million, marking its strategic entry into the burgeoning payment gateway services market.
The acquisition, sealed through a purchase agreement between the two entities, involves ZenTech purchasing 4.16 million ordinary shares of Alpha Fintech, representing a significant equity stake in the company. As per the terms, the founder of Alpha Fintech has committed to providing ZenTech with a profit guarantee of RM1.6 million annually for the next three years.
Alpha Fintech, established on January 22, 2020, has demonstrated strong revenue growth in recent fiscal years, with figures standing at RM9.04 million, RM6.92 million, and RM10.14 million for 2021, 2022, and 2023 respectively. By acquiring a controlling interest in Alpha Fintech, ZenTech aims to consolidate its position in the technology network industry.
In a statement, ZenTech emphasized that this move is poised to bolster its revenue and profitability in the future, thereby enhancing shareholder value. This strategic expansion into the payment gateway sector aligns with ZenTech’s vision for sustained growth and market diversification. – ref: NST
