KUALA LUMPUR (March 18): Ekuiti Nasional Bhd (Ekuinas) has acquired an initial 40% stake in web hosting and cloud service provider Exabytes Capital Group for RM44 million to broaden Ekuinas' portfolio in the services industry.

In a statement today, Ekuinas, a Malaysia government-linked private equity fund management company, said it has an option to increase its Exabytes stake to up to 54%.

Ekuinas chief executive officer Syed Yasir Arafat Syed Abd Kadir said in the statement: "We are broadening our footprint in the services industry. True to our mandate, we are investing in and nurturing high-potential local companies that are ready to scale and compete regionally, if not globally. Exabytes is a prime example of a company that has the platform to be a regional leader that can position Malaysia as a hub for business and talent. Through Exabytes, Ekuinas will be able to capitalise on the booming internet economy globally, which is currently valued at US$3.5 trillion (about RM14.29 trillion)."

"This is Ekuinas' second investment in technology services and we are optimistic of the company's prospect as an enabling technology business. Exabytes is a dominant player in three (3) markets and has delivered consistent historical financial performance and customer growth every year. Given its strong, experienced and founder-led senior management team, we are confident that Exabytes will continue on its growth trajectory with the global market for hosting expected to grow at 9% annually driven by increasing internet penetration and digitalisation of businesses. We look forward to working with a high potential Malaysian entrepreneur to share his vision in taking the company to the next phase of growth," Syed Yasir Arafat said.

According to Ekuinas' statement, Exabytes was founded on the principle of helping SMEs grow their businesses online. Today, the company is a market leader in Malaysia and is on track to becoming one of the largest players in Southeast Asia for web hosting and cloud services, Ekuinas said.

"With a market share of nearly 30% in Malaysia and 18-year track record of strong service, Exabytes is expected to scale especially with the growth of the industry. As part of the company's long-term plan, Exabytes has been, over the last three (3) years, rapidly expanding regionally through merger and acquisitions which enables Exabytes to grow its business in different segments in the respective markets," Ekuinas said.