Maxis proposes MyKRIS Asia acquisition for up to RM157.5mil, its largest to date

Maxis proposes MyKRIS Asia acquisition for up to RM157.5mil, its largest to date
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KUALA LUMPUR (Oct 13): Maxis Bhd has proposed to acquire managed network and security services company MyKRIS Asia Sdn Bhd for up to RM157.5 million, which would be the telecommunications company’s largest acquisition to date.

In a statement, the group said that its acquisition of MyKRIS Asia — the main operating subsidiary of LEAP Market-listed MyKRIS International Bhd — includes adding a pool of experts comprising 70 qualified engineers and support team, which is expected to enhance Maxis’ capabilities.

It added that the move represents the foundation for future 5G readiness from private network to 5G fixed wireless access.

According to its bourse filing, Maxis Broadband Sdn Bhd has entered into a conditional share purchase agreement with MyKRIS International, MyKRIS Net (MSC) Sdn Bhd as well as Chang Wai Hoong and Chew Choo Soon for the acquisition of the entire equity interest in MyKRIS Asia.

The acquisition is subject to, among others, the approval of at least 75% of MyKris International’s shareholders.

The purchase consideration comprises a base consideration of up to RM115 million and subsequent payments of up to RM42.5 million payable over three years upon certain revenue targets being achieved.

Maxis said the integration complements Maxis’ MEF 3.0 Certified Managed Network with Hybrid Network capabilities, which provides the best of both wired and wireless connectivity networks for businesses and offers optimum connectivity experience.

Coupled with MyKRIS Asia’s Managed Network Security capabilities, the group said it will see improvements in service agility, time to market and flexibility of solution in delivering Managed Network Services to enterprises.

“Our latest acquisition reinforces Maxis’ position as the leading converged solutions provider in Malaysia. Importantly, it represents our commitment to investing in the nation and supporting the digital economy, as well as enabling businesses to 'Always Be Ahead',” said Maxis chief executive officer Gokhan Ogut.

Maxis chief enterprise business officer Paul McManus said managed network and security services are vital components for digital transformation strategies.

“With MyKRIS Asia coming onboard, we look forward to expanding our suite of network solutions and technical capabilities built on top of our best-in-class Maxis Programmable Network,” McManus said.

Maxis said MyKRIS Asia’s team of certified technical specialists bring with them competencies in delivering end-to-end services, including design and consulting, implementation, testing and audit, as well as monitoring and incident management.

“Since our inception, MyKRIS Asia has grown its extensive customer base across multiple industries such as manufacturing, hospitality, aviation and services to become a reputable managed network service provider today.

“We are pleased to be integrating with Maxis to empower more Malaysian businesses to leverage industry-leading technologies and help them accelerate their digital aspirations,” said MyKRIS Asia executive chairman and CEO Chew Choo Soon.

Maxis rose seven sen or 1.5% to close at RM4.75, giving it a market capitalisation of RM37.17 billion.

Lam Jian Wyn