BE8 acquires X10 in B620m purchase
published : 16 May 2022 at 04:30
newspaper section: Business
MAI-listed Beryl 8 Plus (BE8), a digital tech consultancy, has reached a deal to acquire Extend IT Resource (X10), a local IT service provider, for 620 million baht to strengthen its plan to become a leading player in Asean.
The acquisition is expected to be completed by August.
The move will support BE8's offerings of innovative software and other services that will facilitate digital transformation for state and private enterprises, said Apisek Tewinpagti, chief executive of BE8.
X10 provides services for more than 30 major enterprises. The company, sporting 12 years of tech service, has expertise in creating the connection structure for technology integration platforms.
"The acquisition will ensure BE8 is one of Thailand's leading players in terms of the size of technical resources," said Mr Apisek.
The deal should foster the integration of more than 400 tech personnel at X10 and some 200 employees at BE8, which will enhance the efficiency of various processes and strengthen its foundation for business, he said.
The move will help the firm unlock human resources constraints in the IT field to stand ready for future growth, Mr Apisek said.
He emphasised the company's plan to become the leading digital tech consultancy in the region, with an aim to drive revenue growth by five times over the next three years.
More investments and acquisitions can be expected in the future, said Mr Apisek.
As of March 31, BE8 had a backlog worth 564 million baht.
BE8 is participating in the bids of major projects worth 569 million baht in total, he said. Of the backlog, earnings of 313 million baht can be expected this year.
In the first quarter, BE8 booked total revenue of 123 million baht, surging 40.9% from the same period a year before. It registered a net profit of 23.8 million baht, up 39.1%.
The company posted almost 400 million baht in revenue in 2021 with 50% growth expected this year.
Krisada Ketphupong, managing director of X10, said the company has expertise in building structure for the integration platform that links with application programming interfaces using the MuleSoft system, which can support digital transformation. The firm's customers include Bank of Ayudhya, Viriyah Insurance, Central Group and the National Cyber Security Agency.
He is confident the acquisition will support BE8 reaching the forefront of the digital tech consultancy industry in Asean.