SYDNEY, AUSTRALIA: Novatti Group Limited, a leading fintech that enables businesses to pay and be paid, is will acquire ATX Fintech Holding, a leading South East Asian payments fintech, based in Malaysia.
Novatti will acquire all of the issued share capital of ATX Fintech Holding Sdn Bhd, the Malaysian parent company of the ATX group, for a minimum consideration of approximately $8.4m up to $9.9m, payable in cash and Novatti fully paid ordinary shares.
Founded in 2011, ATX Fintech provides traditional retail stores and kiosks with digital payment services, such as third party bill and product payments. It has also been recognised as a top 50 rising startup in South East Asia.1
ATX has established a number of strong business and consumer facing brands, including:
- PayHub – a B2B payments aggregator for 130+ products with 19,000+ touch points
- GoPay – a B2C digital wallet used by 10,000+ agents, providing access to more than 100 bill payment and reload products
- MyPOSPay – a B2B2C platform, enabling traditional retailers to offer value-add postal services, such as click and collect for online merchants
- RuncitHero – a B2B2C online marketplace for grocers, providing individual retailers with purchasing power and efficient inventory management
In FY21, ATX generated normalised annual revenue of $3.0m and EBITDA of $0.6m.3 This would have represented an additional 18% annual sales revenue for Novatti in FY21 alone, increasing from $16.5m to $19.5m.
Novatti has been a partner of ATX since 2015, which has resulted in a strong understanding of the business, greatly de-risking the acquisition.
To date, this partnership has largely focused on leveraging Novatti’s technology. Going forward, the acquisition creates an opportunity for Novatti to use its ecosystem and resources to scale the existing ATX business in Malaysia, introduce additional Novatti services, such as billing, and further expand across South East Asia. In addition, there is potential to add other value added products into ATX’s customer base.
Managing Director of Novatti, Peter Cook, said: “ATX is a leading payments fintech in South East Asia. We have thoroughly enjoyed working together as partners since 2015 and see high value in the innovative solutions that ATX has developed for digital payments.”
“The acquisition of ATX will not only provide Novatti with a strong business in Malaysia, it also provides a platform to continue our expansion in South East Asia, where we see increasing growth in digital payments. This growing demand has already supported a number of Novatti’s other recent activities in the region, including the expansion of our partnership with Ripple into Thailand, after launching in the Philippines earlier this year.”
Founder and CEO of ATX, K. Sashi Kumar, said: “We are thrilled to be joining the Novatti team. Having worked together for several years, we know the strength of Novatti’s solutions and believe we can add value. We are particularly excited by the prospect of working together to expand in Malaysia and South East Asia. We look forward to this exciting new chapter!”