PayMate to Acquire DigiAsia in $400 Million Deal, Expanding Fintech Footprint in Southeast Asia

PayMate Announces Intent to Acquire DigiAsia - DigiAsia (NASDAQ:FAAS)

Valuing DigiAsia at US $400 Million Introduces PayMate in Indonesia with Immediate Market Share Expansion, Targeting 2025 Public Listing MUMBAI, India and NEW YORK, Sept. 24, 2024 (GLOBE NEWSWIRE) -- PayMate India ("PayMate"), a leading provider of B2B payments and services with reputable investors such as Visa & Lightbox, today announced that it has entered into a binding term sheet (the "Proposed Transaction") for the potential acquisition of DigiAsia Bios Pte Ltd., Singapore, a leading Fintech-as-a-Service (FaaS) company in Indonesia and a fully owned subsidiary of DigiAsia Corporation FAAS ("DigiAsia"). Under the terms of the Proposed Transaction, an enterprise valuation of US $400 Million for DigiAsia's business has been determined. Additionally, post the Proposed Transaction, PayMate intends to invest up to US $25 Million in cash, the aggregate financing structure and terms will be finalized in mutual agreement. PayMate and DigiAsia will continue joint due diligence on both entities, identification of the right transaction structure, entering into definitive agreements and the necessary corporate and regulatory approvals of PayMate and DigiAsia which is expected to take up to 60 days. Subsequent to the closing of the Proposed Transaction, PayMate intends to initiate proceedings to list the combined entity in India. About PayMate PayMate India Ltd - a leading digital B2B payments company that empowers businesses of all sizes to enhance financial efficiency and streamline B2B payments. The platform simplifies and digitizes B2B payment processes, optimizing working capital, and ensuring timely supplier payments. PayMate's solutions encompass Accounts Payable, Accounts Receivable, Invoice Discounting, Cross Border and Embedded Finance. In FY24, PayMate processed USD 10.5 billion in transactions, serving over 522,000 customers worldwide. With a strong presence in India, CEMEA, and APAC regions, PayMate is the trusted partner for businesses seeking to streamline payment processes. For more information, visit https://paymate.in/ or follow us on LinkedIn. About DigiAsia DigiAsia is a leading Fintech as a Service (FaaS) provider operating a B2B2X model offering its complete Fintech solution in emerging markets. DigiAsia's fintech architecture offers small and medium business enterprises (SMEs) comprehensive embedded finance APIs to streamline processes across the commerce value chain of distributors and customers. DigiAsia's embedded fintech solutions equally address democratizing digital finance access that supports financial inclusion of underbanked merchants and consumers in emerging markets resulting in growth for enterprise business. The suite of B2B2X solutions provided by DigiAsia include, but are not limited to, cashless payments, digital wallets, digital banking, remittances and banking licenses. DigiAsia has recently established a strategic initiative to develop its embedded FaaS enterprise solution with AI capabilities in Southeast Asia, India, and the Middle East, with plans for global expansion. For more information, please visit DigiAsia's Corporate website here or Investor Relations website here. Forward-Looking Statements: This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe", "expect", "anticipate", "project", "targets", "optimistic", "confident that", "continue to", "predict", "intend", "aim", "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements including, but not limited to, statements concerning DigiAsia and the Company's operations, financial performance and condition are based on current expectations, beliefs and assumptions which are subject to change at any time. DigiAsia cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world including those discussed in DigiAsia's Form 20-F under the headings "Risk Factors", "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business Overview" and other reports filed with the Securities and Exchange Commission from time to time. All forward-looking statements are applicable only as of the date it is made and DigiAsia specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future. PayMate ContactDigiAsia Company Contact: Vishvanathan SubramanianSubir Lohani Wholetime Director & Chief Financial OfficerChief Financial Officer and Chief Strategy Officer 91-22-2661 6178646-480-0142 Email: [email protected] Contact: MZ North America Email: [email protected] Market News and Data brought to you by Benzinga APIs

PayMate to acquire DigiAsia in $400 million deal By Investing.com

MUMBAI, India - PayMate India, a prominent B2B payments company, has announced an agreement to potentially acquire DigiAsia Bios Pte Ltd., a leading Fintech-as-a-Service provider based in Singapore. The proposed transaction values DigiAsia at US $400 million and includes PayMate's plan to invest an additional up to US $25 million in cash post-acquisition. The acquisition is expected to broaden PayMate's market share in Indonesia and is a strategic move ahead of its planned public listing in 2025. Following the completion of joint due diligence, the right transaction structure, and necessary regulatory approvals, the companies anticipate finalizing the deal within 60 days. PayMate, which processed USD 10.5 billion in transactions in FY24 and serves over 522,000 customers globally, aims to enhance its digital B2B payment solutions through this acquisition. DigiAsia, currently a fully owned subsidiary of DigiAsia Corporation (NASDAQ: FAAS), offers a suite of embedded finance solutions that cater to the financial inclusion of underbanked merchants and consumers in emerging markets. The press release indicates that the combined entity will proceed with proceedings to list in India post-closing of the proposed transaction, marking a significant step in PayMate's growth strategy. The information provided is based on a press release statement and presents the proposed acquisition as a key development in the fintech industry. In other recent news, DIGIASIA Corp. has secured an initial allocation of 5,120 NVIDIA (NASDAQ:NVDA) H200 GPUs, a move that will bolster its AI fintech solutions. The company's first NVIDIA-powered solution is expected to be deployed by the end of 2024. Operating through its UAE subsidiary Digi Tech Limited, DIGIASIA plans to base its AI initiatives in the Dubai International Financial Center, potentially accessing a global financial services market estimated between USD 200-300 billion annually. The GPUs, valued over $400 million, are set to be deployed across Southeast Asia, India, and the Middle East, with an option for an additional 10,240 units. This integration with NVIDIA's technology is anticipated to enhance DIGIASIA's fintech infrastructure, boosting productivity and efficiency for enterprise clients. The company's CEO, Prashant Gokarn, and CFO, Subir Lohani, have expressed their strategy to deliver growth and attractive returns with the rollout of these new solutions. These developments represent the latest moves in DIGIASIA's ongoing efforts to innovate in the fintech sector. InvestingPro Insights The acquisition of DigiAsia by PayMate India is poised to create significant waves in the fintech sector, particularly with PayMate's goal to expand its footprint in the Indonesian market and its upcoming public listing. DigiAsia Corporation (NASDAQ: FAAS), the parent company of DigiAsia, has been a topic of interest for investors, especially considering its recent performance metrics. InvestingPro data indicates that DigiAsia Corporation has a market capitalization of $68.42 million, which is a critical factor for investors assessing the company's size and market value. Despite facing challenges, as evidenced by a negative adjusted P/E ratio of -55.82 for the last twelve months as of Q2 2024, the company's stock has shown a strong return over the last month with a price total return of 20.62%. This could signal a potential turnaround or a positive market reaction to recent developments, such as the acquisition news. However, investors should note that DigiAsia Corporation's stock has experienced a significant decline over the past year, with a year-to-date price total return of -89.55% and a one-year price total return of -89.41%. These figures highlight the stock's high volatility, which is further supported by an InvestingPro Tip that states the stock generally trades with high price volatility. Another aspect to consider is the company's valuation metrics. With a Price/Book ratio of 9.58, the company is trading at a high Price/Book multiple, suggesting that the market values the company's assets at a premium. This could be due to the potential growth opportunities that investors see in the company's future, especially with the PayMate acquisition on the horizon. For those interested in a deeper analysis, there are additional InvestingPro Tips available, which provide insights into the company's financial health and market performance. For instance, DigiAsia does not pay a dividend to shareholders, which may be relevant for income-focused investors. Moreover, the InvestingPro Fair Value is listed at $3.78 USD, which could indicate the stock's potential undervaluation at its previous close price of $1.17 USD. Investors seeking to capitalize on the latest developments in the fintech space may find the full suite of InvestingPro Tips on DigiAsia Corporation invaluable. Currently, there are 10 additional tips listed on InvestingPro, providing a comprehensive view of the company's financial standing and market position.