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KUALA LUMPUR - Sagtec Global Limited (NASDAQ: SAGT), a key player in customizable software with a market capitalization of $38.8 million, has announced its plan to acquire Smart Bridge Technology Limited, an emergent AI software firm. The acquisition, valued at $17.6 million, is poised to position Sagtec as a leader in AI technology, delivering real-time predictive intelligence across Asia. According to InvestingPro analysis, Sagtec appears undervalued relative to its growth potential, with strong financial health metrics and impressive revenue growth of 77.6% in the last twelve months.
The proposed transaction, which is contingent on a definitive agreement and customary closing conditions, involves purchasing Smart Bridge at approximately 10 times its price-to-earnings ratio. This strategic move is expected to enhance Sagtec’s offerings by integrating Smart Bridge’s AI engine and software into its ecosystem. Sagtec currently trades at a P/E ratio of 28.8, with InvestingPro data showing the company operates with a moderate debt-to-equity ratio of 0.21 and maintains a healthy current ratio of 2.01. (Discover 5 more exclusive ProTips and detailed financial metrics with an InvestingPro subscription.) The merger aims to provide automated business intelligence, AI-driven menu optimization, and behavioral fraud analytics to Sagtec’s existing F&B clients, while also expanding into new sectors such as logistics and fintech.
Sagtec, already supporting numerous F&B outlets with its point-of-sale and backend platforms, will leverage the acquisition to tap into a multi-billion-dollar total addressable market. Industry forecasts suggest significant growth potential in AI-related markets, with projections indicating a global AI retail market worth $43 billion by 2032, an SME-focused AI software market exceeding $25 billion, and an intelligent POS and behavioral analytics market surpassing $65 billion.
Smart Bridge, known for its efficient and scalable AI-driven business model, reported a net profit of $2.1 million, underscoring its financial and operational success. The company’s scalable AI engine has been deployed effectively across high-volume environments in Asia, confirming the adaptability and commercial viability of its technology. Sagtec’s own financial strength is evident in its impressive return on equity of 52% and gross profit margin of 27.45%, as reported by InvestingPro. (Access comprehensive financial analysis and real-time alerts with an InvestingPro subscription.)
Kevin Ng, Chairman, Executive Director, and CEO of Sagtec, emphasized the transformative nature of the acquisition, stating it will not only enhance business operations but also fundamentally reshape them, creating new revenue streams and promoting smarter, data-driven growth across industries.
Smart Bridge Technologies, based in Malaysia, specializes in AI-powered automation and digital transformation services. Meanwhile, Sagtec, beyond its software solutions, operates power-bank charging stations throughout Malaysia via its subsidiary, CL Technology (International) Sdn Bhd.
The announcement of this proposed acquisition is based on a press release statement and marks a significant step in Sagtec’s vision to become the leading AI-first enterprise platform.
In other recent news, Sagtec Global Limited has entered into a Master Dealership Agreement with Dubai-based SMD Tech FZCO, which is expected to generate at least $30 million in revenue over five years through the distribution of its Speed+ Cloud-Based Smart Ordering System in Dubai. This agreement marks a significant step in Sagtec’s international growth strategy, aiming to capitalize on the UAE’s digital transformation. Additionally, Sagtec has announced the operational launch of its Speed+ Smart Cloud Ordering Software in Indonesia, marking the start of its expansion in Southeast Asia. The company has signed an exclusive Master Dealership Agreement with PT Kiwari Asih Solusi in Indonesia, projecting to generate at least $30 million in revenue over the next five years. In Malaysia, Sagtec has introduced an AI-powered chatbot service tailored for the food and beverage industry, integrated with its existing platforms to enhance customer interactions. The company plans to expand this chatbot service to Indonesia, Singapore, and Thailand. These developments reflect Sagtec’s strategic initiatives to strengthen its presence in key markets and leverage the growing demand for digital solutions across the region.
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