Friday, July 15, 2011

Century Software expands into Indonesian market

KUALA LUMPUR: Century Software Holdings Bhd (CSHB) is venturing into Indonesia after acquiring a 60% stake in Indonesia-based PT. Praisindo Teknologi for RM4.35 million as part of its regional expansion plan.

The company said that it had entered into a sale and purchase agreement to acquire the stake from Praisindo Teknologi's existing major shareholder, PT. Mahaka Media Tbk, which is listed on the Jakarta Stock Exchange.

The remaining 40% stake in Praisindo Teknologi will be held by its management team, it said.

Praisindo Teknologi is a software development company, focusing on the development of portfolio management solutions for the fund management and asset management industry.

In a statement Friday, July 15, CSHB chairman Samsul Husin said the acquisition was an indication that the company had the capability to grow beyond Malaysia.

'The objective of acquisition is for Century Software to expand into the huge Indonesian market in the fastest way and at the same time, to cross-sell Praisindo Teknologi's products in the Malaysian market,' he said.

'We see a lot of potential in the service that Praisindo Teknologi is providing. For example, one of the major expansion plans for Praisindo Teknologi after our acquisition is to penetrate into the lucrative banking industry for wealth management and treasury, which can command higher pricing and margins compared to the fund management industry.'

Samsul said Praisindo Teknologi's earnings for FY2012 were expected to grow exponentially with CSHB getting onboard as a major shareholder, through the additional product lines that it would introduce via Praisindo Teknologi in the Indonesian market.

'We are also optimistic that CSHB and Praisindo Teknologi will continue to work hand-in-hand towards the development of both companies,' he said.

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