KUALA LUMPUR: Censof Holdings Bhd is acquiring a 51% equity interest in Cognitive Consulting Sdn Bhd (CCSB) for RM3.7mil with a profit guarantee scheme.

       In a statement, the technology holdings company said the purchase consideration was derived after taking into consideration the current average price-to-earnings multiple of 7.5 times and the average pre-tax profit of FY21 and FY22.

       It said the consideration is expected to be partially funded through the balance of proceeds from the disposal of Dagang Nexchange Bhd shares back in August 2020 and internal generated funds.

       CCSB is principally involved in the business of providing information technology consultancy and system integration services specialising in robotic process automation or more commonly referred to as RPA.

       Censof managing director Ameer Shaik Mydin said the strategic investment aligns with its strategies to grow and focus on its digital technology segment.

       "Both parties are able to leverage on each other’s strength and expertise by offering the RPA solutions to Censof’s large customer base, namely the government and commercial sectors.

       "Fundamentally, we can now offer our customers to digitalise and migrate onto cloud-based solutions via the utilisation of the RPA technologies.

       "This will progressively improve the efficiency and productivity of their work processes, as well as ensuring sustainability in their businesses,” he added.

       He said the acquisition will diversify Censof's revenue stream and contribute positive to its earnings from next year onwards.

       Meanwhile, CCSB CEO Zulkifli Md Ghairi @ Md Asri said the partnership will allow its solutions to reach a much wider market segment.