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Post investment, Mitsui will own an effective 12.69% stake in ADA while increasing their stake in ADS to 20%.
KUALA LUMPUR, Malaysia, Nov. 2, 2023 /PRNewswire/ -- Axiata Digital & Analytics Sdn Bhd (ADA), today announced Mitsui's investment of USD 58 million in ADA, facilitated through ADA's holding company, Axiata Digital Services Sdn Bhd (ADS). Mitsui's additional investment has established a watermark valuation of USD 550 million for ADA, reflecting the company's continued growth and innovation in the digital and data transformation domain.
On the strength of the investment, ADA - the largest independent data and AI company in the region, spanning 12 countries across Asia – is set to broaden its digital reach and reinforce its commitment to advancing digital and data transformation in the region. Mitsui, a renowned Japanese conglomerate, has been working closely with ADS and ADA since their initial investment in 2019, and is now intensifying its efforts to deliver data and AI solutions to partners and clients in the APAC region. Following the investment, Mitsui's stake in ADS will increase from 3.29% to 20%, resulting in an effective 12.69% stake in ADA.
Srinivas Gattamneni, Chief Executive Officer of ADA, said "Mitsui's strong endorsement highlights our extraordinary growth story. We are excited about the prospect of deepening our collaboration with Mitsui to empower their partners with cutting-edge data, AI, and technology solutions. This partnership represents a significant step forward as we enter our next phase of growth, and we believe it will be an invaluable contributor to our journey."
Vivek Sood, Group Chief Executive Officer and Managing Director of Axiata, said "Mitsui has a strong and proven track record of bolstering innovative businesses in the fields of AI, data analytics and digital transformation. We are confident that broadening our strategic partnership will further enhance ADA's expertise in AI and data analytics with Mitsui's substantial business capabilities derived from a global portfolio. This is a significant step towards generating greater, long-term value for our stakeholders and in driving continued growth within this space. Consequently, this will enable Axiata to seize additional opportunities in the digital business realm while sharpening our focus on our core pillars, thereby enabling sustainable growth across our geographic footprint.
We also acknowledge the contributions of other shareholders within ADA, such as Softbank and Sumitomo, who have been instrumental in providing support and fostering synergies as ADA pursues its journey towards achieving unicorn status in the AI, data analytics and digital transformation space.
Toru Matsui, Representative Director, Senior Executive Managing Officer of Mitsui & Co., Ltd, said: "The IT & Communication Business Unit has been executing a CRM strategy to develop digital marketing business clusters that contribute to our consumer-centric businesses and additional investment in ADS will strengthen this strategy in Asia. We look forward to collaborating closely with Axiata Group and ADS/ADA in order to contribute to the growth of ADA by accelerating the provision of its digital marketing solutions and data analysis services to our partners throughout the region."
About ADA
ADA offers a comprehensive suite of services that empower enterprises and brands to bolster digital marketing, sales transformation, and data transformation across Asia. The company has a multi-faceted, data-driven approach that encompasses:
ADA maintains a robust presence in Asia with 12 offices spread across the region and employs approximately 1,400 professionals. The company's dual headquarters are in Singapore and Malaysia. Notably, ADA's shareholders include industry giants like Softbank, Axiata, Mitsui, and Sumitomo Corporation.
For more information visit ada-asia.com or contact Klara Grintal, klara.grintal@ada-asia.com
About Mitsui
Mitsui & Co. is a global trading and investment company with a presence in more than 60 countries and a diverse business portfolio covering a wide range of industries.
The company identifies, develops, and grows its businesses in partnership with a global network of trusted partners including world leading companies, combining its geographic and cross-industry strengths to create long-term sustainable value for its stakeholders.
Mitsui has set three key strategic initiatives for its current Medium-term Management Plan: supporting industries to grow and evolve with stable supplies of resources and materials and providing infrastructure; promoting a global transition to low-carbon and renewable energy; and empowering people to lead healthy lives through the delivery of quality healthcare and access to good nutrition.
For more information on Mitsui & Co's businesses visit, www.mitsui.com
For media enquiries, please send a request here: https://form.mitsui.com/webapp/form/16694_csy_13/index.do
About Axiata
In pursuit of its vision to be The Next Generation Digital Champion, Axiata is a diversified telecommunications and digital conglomerate operating Digital Telcos, Digital Businesses and Infrastructure businesses across a footprint spanning ASEAN and South Asia.
The Group has controlling stakes in market-leading mobile and fixed operators in the region including 'XL' and 'Link Net' in Indonesia, 'Dialog' in Sri Lanka, 'Robi' in Bangladesh, 'Smart' in Cambodia and 'Ncell' in Nepal while 'CelcomDigi' in Malaysia is a Key Associate Company. Axiata's regional digital business verticals comprise 'Boost' a fintech company, and 'ADA', a digital analytics and AI company. 'EDOTCO' is among the top 10 independent TowerCos globally, operating in nine countries to deliver telecommunications infrastructure services.
As a committed and long-term investor, the Group actively supports and drives young talent development; community outreach; as well as climate change initiatives. Axiata's broader goal of Advancing Asia aims to piece together the best in the region in terms of innovation, connectivity and talent to drive digital inclusion and sustainable progress across our markets. Find out more at www.axiata.com
