KUALA LUMPUR: Censof Holdings Bhd's wholly-owned subsidiary, Century Software (Malaysia) Sdn Bhd (CSM) today signed a share subscription agreement with GW Intech Sdn Bhd (GWI) to acquire a 51 per cent stake in the latter.
The acquisition will be carried out through the share subscription of 100,000 new GWI shares for RM500,000.
Censof group managing director Ameer Shaik Mydin said this acquisition will strengthen Censof's dominant position in the local government front by providing innovative and digital financial management solutions.
"With Censof's strengths in digitising the government services, I believe we can grow this business to provide smart government solutions to the local government.
"This acquisition is a win-win for Censof and GWI where we will be able to capitalise on each other's expertise, in addition to increase the number of government agencies in compliance with the SAGA system application criteria provided under Censof's financial management solutions, from our current clientele of over 90 agencies to over 140 agencies.
"This acquisition will undoubtedly improve our earnings in the near future," he said in a statement.
GWI, established in 2001 as an information technology (IT) solution provider, specialises in analysing, designing, developing and implementing IT solutions.
GWI is the first company to be awarded the ePBT 1.0 contract in 2005 by the Ministry of Housing and Local Government.
Subsequently in 2014, GWI secured the ePBT 2.0 redevelopment project to convert the client server based ePBT system to a web-based version of the ePBT 2.0.
GWI currently has several maintenance contracts with Alor Setar City Council
Kuala Kangsar City Council, Manjung City Council, Langkawi City Council and the District Council of Kerian.
The ePBT system is a financial application system developed for local authorities to collect and make payments for local services accounts such as assessment tax, rental of business premises and compounds.
Today, the ePBT 2.0 system is deployed by over 50 local authorities, mainly in Perak, Negeri Sembilan, Kelantan, Kedah and Pahang.
"Conforming with the 12th Malaysia Plan and the MyDigital blueprint focusing on digitalisation of the public sector and the micro, small and medium enterprises, we are committed to fuel digital transformation through innovative technologies.
"As one of the market leaders of the digital-driven industry, we have continuously collaborated with the home-grown companies to expedite the transformation, which is also in tandem with the government's initiative.
"We look forward to work closely with GWI's team who shares our vision and aspiration to further innovate and digitalise our solutions to create a significant impact to the industry and the nation," Ameer said.