Frugl Group to acquire Thai retail data analytics specialist Prodigy9
Price comparison platform developer Frugl Group (ASX: FGL) will spend $800,000 to acquire Thai software engineering consultancy Prodigy9, which specialises in developing data analytics platforms in the retail sector.
Under the terms of the deal, Frugl will pay Prodigy9 a consideration of 10 million shares priced at $0.08 each, plus an aggregate of 33.75 million performance rights linked to revenue and profitability milestones.
Upon completion of the acquisition, Prodigy9 will continue to operate under its own brand within the Frugl Group.
Specific expertise
Prodigy9’s client base includes some of Thailand’s largest corporate groups within the insurance, consumer electronics, transportation and fintech sectors.
The company has specific technical expertise in the “Golang” programming language, considered a sought-after capability by fintechs.
Frugl intends to operate Prodigy9 as a separate brand within its portfolio, taking advantage of the significant brand it has developed in Thailand.
End-to-end consulting
Frugl chief executive officer Ken Tovich said the addition of Prodigy9 would deepen the company’s expertise in digital data analytics and allow it to offer end-to-end technology consulting services for clients.
“Immediately, we will acquire an established business with proven data analytics capabilities, working with clients across a broad range of sectors as their trusted technology partner,” he said.
“Prodigy9 will enable us to offer a true end-to-end consulting service, encompassing data analytics technologies and the engineering capabilities to scope and deliver entire new software solutions for clients.”
Prodigy9’s 2023 revenues totalled $1.3 million and, while the company operated at a modest net loss, Mr Tovich said he was confident it could become cash flow positive in the near term.
Trienpoint acquisition
Prodigy9 is Frugl’s second acquisition in the Thai software engineering space and follows the purchase in April of digital solutions provider Trienpoint International.
That deal enabled the company to accelerate the development of its software platform and advance its machine learning and artificial intelligence integration projects.
Trienpont focuses on outsourcing and tools-based engagements, while Prodigy9 consults on the design, development and maintenance of integrated software solutions.