KUALA LUMPUR (Jan 26): Dagang NeXchange Bhd (DNeX) has acquired a substantial stake in two consulting and accounting system services companies, as part of plans to expand and strengthen its information technology and e-services business segment.

DNeX executive deputy chairman Datuk Samsul Husin, who is also Dagang Net Technologies Sdn Bhd executive chairman, said the acquisition will add value to the group's existing offerings in e-services for trade facilitation.

In a filing with Bursa Malaysia today, DNeX said its wholly-owned subsidiary Dagang Net has entered into a conditional share sale and purchase agreement with Nuraslina Zainal Abidin to acquire 510,000 shares or a 51% stake in Genaxis Sdn Bhd for RM10 million. This acquisition gives DNeX a 60% direct stake in Innovation Associates Consulting Sdn Bhd (IAC).

"The consulting and accounting services know-how that we hope to gain through this acquisition will extend beyond trade facilitation to other verticals as well. We will continue to look for opportunities to provide leading edge e-services that can help organisations improve efficiency and effectiveness of their operations, and ultimately boost output and bottom line," said Samsul.

Genaxis is a consulting firm that delivers training and consulting services in transformation initiatives, and has worked with such organisations and agencies as the Royal Malaysian Customs Department, UEM, CIMB Group Holdings Bhd, Malaysia Productivity Corp, Lembaga Tabung Haji and Subang Jaya Municipal Council.

IAC, meanwhile, is a consulting firm with more than 300 experienced consultants that has completed more than 100 projects in the public and private sectors. The company is currently the contractor for the Government Financial and Management Accounting System (1GFMAS) for a contract sum of RM228.8 million. 1GFMAS is an accrual accounting shared services implementation, which is expected to be fully implemented by May 2018.

DNeX shares closed unchanged at 50 sen today, valuing it at RM877.75 million.