KUALA LUMPUR (April 5): GHL Systems Bhd is acquiring payment solutions company Paysys Communications Sdn Bhd for RM80 million, which will give it an opportunity to solidify its presence as a payment solutions provider in Malaysia.

GHL said it is also in line with the group’s strategy to increase its market share in the transaction payment acquisition industry.

In a filing with Bursa Malaysia today, GHL said its wholly-owned subsidiary S Capital Sdn Bhd has entered into a conditional share sale agreement (SSA) for the proposed acquisition.

It added that the consideration will be satisfied via RM40 million cash and an issuance of up to 33.5 million new GHL shares to be issued at RM1.1927.

"Paysys is principally involved in the credit card acquiring business, provision of terminals and payment solutions. Its revenue is largely dependent on the demand for electronic payment terminals used in the retail sector," said GHL.

The proposed acquisition is expected to be completed in the second quarter of 2018 and start contributing to GHL's earnings and earnings per share for the financial year ending Dec 31, 2018.

"We are very excited with this transaction as it strengthens GHL’s positioning in Malaysia and expands the geographical and customer coverage that both companies currently serve. With the coming together of management and resources, we foresee that we will be able to leverage on each other’s unique strengths to better serve our respective clients and offer even better service and coverage,” said GHL group CEO Danny Leong in a separate statement today.

GHL shares closed 3 sen or 2.91% higher at RM1.06 today, with 551,700 shares traded, bringing a market capitalisation of RM696.76 million.