Revenue Group is acquiring the remaining 49% equity in its wholly-owned subsidiary of Revenue Secure for a purchase consideration of RM31.85 million.
The group will be considering issuing 21,092,715 new ordinary shares at an issue price of RM1.51 each the fund the deal.
Revenue Secure was established as a research, development, deployment of secured card issuing technology, provision of consultancy services on card programming and computer technology with encryption and high-end security features for all kinds of applications.
As of 7 April 2022, being the latest practicable date preceding the date of this announcement, the issued share capital of Revenue Secure is RM500,000 comprising 500,000 ordinary
For the financial year ended 30 June 2021, Revenue Secure recorded an audited profit after tax of RM0.70 million and net asset of RM1.36 million. Based on the unaudited financial statements for the 6-month period ended 31 December 2021, it recorded a PAT of RM2.2 million and NA of RM3.86 million. The subsidiary of Revenue Secure is DAX Venture Sdn Bhd.
Revenue is looking to expand in the field of finance and views the acquisition as appropriate with Revenue Secure having strong research and development capabilities in payment security and payment infrastructure. The company has successfully developed Tokenisation Service Platform for Payments Network Malaysia Sdn Bhd.
Tokenisation plays an important role in securing online and electronic commerce transactions as it replaces sensitive account information such as the debit card 16-digit Primary Account Number (“PAN”) with a unique substitute identifier known as Token PAN for purchase transactions. This process protects sensitive information from online theft and fraud while also ensuring a secure checkout for cardholders. Tokenisation also provides cardholders the convenience to store their favourite debit card in the merchant’s mobile application or website, which could be easily retrieved for future use without the hassle of entering card information repeatedly.
The Proposed Acquisition will allow the Revenue to fully tap on the strong R&D capabilities and existing software solutions, in addition, it will enable both parties to further leverage each other’s strengths and business relationship.
