Key Alliance acquiring enterprise cloud solutions firm for RM3.5m

PETALING JAYA: Key Alliance Group Bhd is acquiring the entire stake in enterprise cloud solutions provider RapidCloud (M) Sdn Bhd for RM3.5 million.

RapidCloud currently hosts more than 10,000 small and medium enterprise and corporate clients in Southeast Asia, and is one of the established resellers of Alibaba Cloud in Malaysia.

In a filing with Bursa Malaysia yesterday, Key Alliance Group said its unit DVM Innovate Sdn Bhd has entered into a share acquisition agreement with RapidCloud Asia Sdn Bhd for the deal.

Key Alliance Group said it will finance the purchase via the combination of internally generated funds.

It said the proposed acquisition provides the group a turnkey operation of 10,000-customer strong hosting business, which is expected to be earnings accretive immediately, and allow the group to immediately leverage of an existing reseller relationship with AliBaba Cloud and Alibaba Global Gold Supplier.

The proposed acquisition dovetails into Key Alliance Group’s acquisition of Progenet Sdn Bhd as part of its strategy to acquire synergistic businesses to tap into the growing e-commerce market in Malaysia, fostered by the launch of the government-led Digital Free Trade Zone, it added.