KUALA LUMPUR: Zen Tech International Bhd (ZenTech) is acquiring a 70 per cent stake in the payment gateway provider Alpha Fintech Sdn Bhd for RM10 million.
Through the acquisition, ZenTech successfully enters the expansive market of payment gateway services.
According to the purchase agreement signed between tge two parties, ZenTech is buying 4.16 million ordinary shares of Alpha Fintech, representing a 70 per cent equity stake in the latter.
The founder of Alpha Fintech will provide a profit guarantee of RM1.6 million per annum for the next three years to ZenTech.
Alpha Fintech was registered and established on Jan 22, 2020.
Its revenue for the fiscal years 2021, 2022 and 2023 amounted to RM9.04 million, RM6.92 million and RM10.14 million respectively.
Through the acquisition of a controlling stake in Alpha Fintech, ZenTech said it will solidify its presence in the technology network industry.
"It is expected to contribute to the company's revenue and profitability in the future, creating shareholder value," it added.