17 hours ago
Pertama Digital confident of returning to profitability after acquisition of two companies
KUALA LUMPUR: Government e-services provider Pertama Digital Bhd (PDB) expects to return to profitability after acquiring 80% stakes in two companies, D-Ron Singapore Pte Ltd (D-Ron SG) and D-Ron Malaysia Sdn Bhd (D-Ron MY) with a purchase agreement that includes RM32.4 million profit guarantee over two years.
Pertama Digital Group CEO Lim Nasrul Halim said the profit guarantee offered by D-Ron is backed by an escrow arrangement to ensure the guarantee is fully realised.
There is also a two-year service agreement with the current founders and leadership team of D-Ron as Lim said it was important for D-Ron to undergo a smooth transition into a Pertama Digital subsidiary.
'We are already slightly profitable according to last quarter's financial report, but it isn't good enough for us and our shareholders.
'We are confident about our profitability mainly because of our acquisition of D-Ron which will come with a profit guarantee of RM32.4 million,' he told reporters during a press conference at Pertama Digital's corporate headquarters today.
Lim said the acquisition of D-Ron was not for the sake of profitability but because the companies, which specialise in information technology and surveillance hardware distribution, complemented well with others in the Pertama Digital group. 'We are not acquiring these companies for the sake of profitability. It's strategic and there's a bigger picture to it.'
Pertama Digital plans to acquire D-Ron SG for RM101.14 million (S$30.41 million) and D-Ron MY for RM4.99 million from three vendors, bringing the total amount to RM106.13 million in cash.
Recently, Pertama Digital received approval from Bursa Malaysia for an extension until Oct 31, 2025, to submit its regularisation plan.
Lim said he was confident that the company will be able to submit the regularisation plan earlier than end October.
'We are working hard towards our due diligence process and D-Ron's leadership has been helpful in expediting the process of preparing the plan. Once we have shareholder approval we can submit the plan early.'
Initially, Pertama Digital failed to submit a regularisation plan by the Feb 9, 2025 deadline as required by Bursa Malaysia.
Its conditional acquisition of D-Ron forms the cornerstone of Pertama Digital's regularisation plan built on a series of high-impact deliverables.
The deliverables include the completion of a major acquisition with strong earnings visibility, positioning Pertama Digital as a key player in digital infrastructure; the evolution of MyPay to strengthen its role as a trusted digital backbone for government transactions and public sector innovation; and a partnership with Infobip to enhance public sector's communication infrastructure and government-to-citizen engagement.
Other ongoing projects include eJamin, a bail payment system that has processed over RM1 billion in transactions, and BizKecil, a platform supporting small enterprises.
The company is also exploring a cybersecurity collaboration with Netsec Sdn Bhd for the public sector.
Pertama Digital said these efforts form part of its plan to strengthen financial performance and operational viability.
The company will now proceed with comprehensive due diligence on D-Ron Group and will convene an extraordinary general meeting to seek shareholder approval.
Pertama Digital will also work closely with Bursa Malaysia to secure all necessary regulatory clearances.
