SoftBank buys into Axiata digital advertising unit
SoftBank Corp formed an alliance with the Digital Marketing Unit of Axiata Group and planned to invest approximately MYR 250 million ($ 60.7 million) in a 23 percent stake as part of a strategy to increase advertising capabilities.
The operator stated that investing in Axiata Digital Advertising (ADA) will allow it to accelerate its digital marketing across Asia by accessing the company’s sales and customer support structure, data and AI business expertise.
ADA, based in Kuala Lumpur, offers integrated digital marketing services in nine countries in the region.
Axiata said the deal will accelerate the expansion of its digital and analytics business. SoftBank Corp’s investment will give ADA an estimated value of MYR 1.1 billion. Axiata Digital Services’ stake in the unit will decrease to 63.5 percent
Daichi Nozaki, head of the Global Business Division of SoftBank’s Enterprise Business Unit, will join the ADA board this month.
According to Izzaddin Idris, President and Group CEO of Axiata, ADA’s revenue has tripled since it was launched three years ago and has achieved positive EBITDA for the past two years. He gave Allianz the tip “to continue driving ADA’s dynamic growth in the region”.
Ken Miyauchi, vice director and chairman of SoftBank Corp. stated that the alliance enables the company to “leverage our digital marketing business outside of Japan.”
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