Ramssol acquires 51% stake in Geekstart for RM6.9mil

BANGKOK: Human capital management solutions and technology provider Ramssol Group Bhd is acquiring a 51 per cent stake in Bangkok-based Geekstart Company Ltd for RM6.9 million to expand its digital capabilities across Southeast Asia.

The company noted that the acquisition exercise comes with a profit guarantee of about RM4.7 million for the financial year ending Dec 31, 2024 (FY2024) and not less than RM7.05 million for FY2025.

Ramssol group managing director and chief executive officer Datuk Seri Cllement Tan Chee Seng said the exercise is expected to contribute positively to the group’s financial results this year.

“With these profit guarantees, the forward price-to-earnings ratio for the acquisition is projected to be 1.9 times, underscoring the value of this investment,” he told Malaysian media after the acquisition signing ceremony here today.

Tan further elaborated that the acquisition would be made through the issuance of 13 million new shares by the company. “Even with the issuance of 13 million new shares, the profit guarantee provided by Geekstart will increase our earnings per share,” he said.

The acquisition is expected to be completed by next month.

In a separate statement, Tan said the acquisition exercise marked a significant milestone in Ramssol’s expansion strategy, reinforcing its position as a key player in the region’s evolving digital experience landscape.

He shared that acquiring Geekstart would enable the group to introduce a recognised artificial intelligence (AI) solution to its existing client base in Southeast Asia, attract new clients, and solidify its position as AI becomes increasingly prevalent in the social and business communities.

“Geekstart’s proven expertise and strategic partnerships with global tech giants will significantly strengthen our services and offerings to deliver unparalleled value to our clients.

“With the rapidly growing market outlook in Data Experience as a Service (DXaaS) and Digital Transformation as a Service (DTaaS) across (Southeast Asia), where the projected compound annual growth rates range from 19 to 25 per cent from 2024 to 2027, we are well positioned to capitalise on these opportunities and drive innovation in the region,” he added. – BK