In a major strategic move to extend its footprint in Southeast Asia, CTOS Digital Bhd, a Malaysia’s based credit reporting agency, has announced the acquisition of two credit scoring companies in the Philippines and Indonesia.
The deal, valued at $6.37 million, was disclosed in stock exchange filings. CTOS revealed that the acquisitions would be funded by bank financing.
CTOS Digital is buying a 100% stake in the Philippine-based Finscore Inc for about $5.9 and securing an 80% share in Indonesia’s PT Prime Analytics for about $474,000.
The acquisitions aim to boost the credit reporting agency’s presence in these countries and create a dominant alternative data platform for credit-related services, according to a company announcement.
CTOS stated its intentions to capitalize on the “strong market presence and expertise” of the acquired companies to offer a comprehensive suite of credit-related products in the Philippines and Indonesia.
“This strategic move aligns perfectly with our vision of advancing financial inclusion and bringing superior credit solutions to individuals and businesses throughout the Asean region,” said CTOS group chief executive officer Erick Hamburger in a statement.
Agreements have been signed with UBX Private Ltd and Vegueros Ltd, the shareholders and option sellers of Fintech Platform Ventures Pte Ltd, which is Finscore’s holding company.
Additionally, a deal was struck with CIBI Holdings Pte Ltd, a wholly owned subsidiary of Creador Management V Ltd, to acquire an 80% stake in Alt Decisions, the parent company of Prime Analytics.
These transactions have familial ties, as Jane Vine Sdn Bhd, a major shareholder of CTOS, is a subsidiary of Creador V LP, a fund managed by Creador Management
CTOS Digital was established in Malaysia in 1990 under the purview of the Registrar Office of Credit Reporting Agencies and Malaysia’s Ministry of Finance, and regulated under the Credit Reporting Agencies Act 2010.
The company facilitates credit extensions by empowering individuals and businesses with access to crucial information at greater ease and speed.
Its portfolio of credit risk management solutions and services are used by Malaysia’s banking and financial institutions, insurance, telecommunication companies, large corporations, SMEs, legal firms, and statutory bodies.
According to World Bank’s Doing Business Report 2020, Malaysia is ranked 12 out of 190 countries for ease of doing business and deemed one of the easiest countries to get credit in the world.