KUALA LUMPUR (Feb 4): Green Packet Bhd’s shareholders have approved the acquisition of Singapore-based electronic know-your-customer (e-KYC) firm Xendity Pte Ltd.

In a statement, Green Packet said that its shareholders approved the move to buy Xendity for US$10 million (RM40.59 million) earlier this week. 

Of this sum, US$1.5 million will be satisfied in cash, while the remaining amount of up to US$8.5 million will be satisfied via consideration shares, it added.

“The consideration shares will be allotted and issued to vendors of Xendity in three tranches over three financial years, based on specified performance targets,” Green Packet said. 

“Xendity is a strategic acquisition for Green Packet as its e-KYC software will complement Green Packet’s enterprise products and solutions, and is expected to bring in material impact on the top and bottom lines of Green Packet’s digital operations,” it added. 

Green Packet managing director and chief executive officer (CEO) CC Puan said: “With Xendity’s partners and strong business pipelines within Malaysia, Indonesia and Thailand, we project a 15% compound annual growth rate (CAGR) with over RM100 million revenue over the next five years and a healthy profit margin.”

In a bourse filing on Tuesday, Green Packet announced that the acquisition had become unconditional as of Feb 1. It added that the first tranche of the shares issued to help pay for the acquisition involved 28.89 million shares at 42 sen apiece.

The issuance of the other two tranches will be subject to certain revenue targets being achieved by Xendity.

Shares in Green Packet closed down half a sen or 1.28% at 38.5 sen today, translating into a market value of RM445.34 million.