ACE listed Systech acquires Wilstech, giving 3X return to ECF investors

• 3rd ECF exit for Ata Plus after Skolafund 2019 & Greenpro AI Accounting 2021
• US$15m acquisition consists of US$4.2m cash and US$11.6m in shares of Systech

[Subheads edited for accuracy. An earlier version misspelt Skolafund and this is the 3rd exit for Ata Plus investors.]

Bursa Malaysia has granted the approval to Systech Bhd, a company listed on the ACE Market, to acquire Wilstech Sdn Bhd, for a total purchase consideration of US$15.82 million (RM75 million) consisting of RM20 million in cash and RM55 million via the issuance of 152,777,777 Systech shares. Wilstech, an IT solutions provider, raised UD$316,400 (RM1.5 million) through an equity crowdfunding (ECF) campaign with Ata Plus Sdn Bhd in Sept 2020 at a RM25 million valuation.

Ata Plus hails the acquisition exercise as testament to the value of ECF as a feasible investment platform in businesses with high-growth potential companies. This is the 2^nd ECF exit from Ata Plus. The first exit in 2019 was a corporate acquisition of Skolafund, a social impact enterprise while the 2nd exit was Greenpro AI Accounting in 2021.

[RM1 = US$0.211] [Ed: Para edited for accuracy.]

“Since 2020, I’m proud to say that we have grown from strength to strength. ECF fundraising certainly played an instrumental role in our growth journey specifically in our product development, market expansion and customer acquisition,” said Wilson Low, Founder and CEO of Wilstech.

Today, Wilstech specialises in business-to-business (B2B) IT solutions, IT infrastructure, IT administration and outsourcing and the supply of IT hardware. Its customers span across the public sector, GLCs, corporates and SMEs.

Wilstech has recorded impressive growth in revenue and profit since its ECF investment exercise. The year-on-year revenue growth for 2020/21 and 2021/22 are 146% and 167% respectively; whilst the Profit-After-Tax is 113% and 199% respectively for 2020/21 and 2021/22. From an 8-man company in 2020, it has grown to 40 staff in 3 years. "We are grateful for the trust and confidence that ECF investors have placed in us and the Malaysian Government support through the Malaysia Co-Investment Fund (MyCIF) programme. I am delighted to be able to deliver positive returns to our shareholders, particularly the ECF investors. Without their unwavering belief and support, we would not have achieved the position we hold today," Wilson added.

ECF offers investors access to a wide array of high-growth companies spanning across various industries, such as technology, healthcare, F&B, agriculture, greentech, education and consumer goods. This diversification, coupled with the high return potential, makes ECF an attractive investment avenue. The Securities Commission introduced ECF to give retail investors a chance to participate in and benefit from the growth of promising businesses via regulated ECF platforms like ATA Plus. Whilst platforms like ATA Plud conduct thorough due diligence, disclose relevant information and investment terms of the companies listed on its platform; investors should be mindful of the risks involved and conduct careful assessments before investing.

“Wilstech’s acquisition is a testament to the power of ECF in propelling companies towards success. The capital raised through ECF enabled Wilstech to achieve its business targets and ultimately attract a larger, established player like Systech. This success story underscores ECF's value for investors and entrepreneurs alike,” said Elain Lockman (pic), Ata Plus’ CEO and co-founder.

With Systech’s acquisition of Wilstech as a prime example, ECF emerges to be a promising investment avenue for portfolio diversification through curated high-growth ventures. Regulated platforms like Ata Plus provide access to such opportunities, fostering SMEs and startups and bolstering the nation’s economic growth. For more information about ECF and to discover exciting investment opportunities, visit Ata Plus at www.ata-plus.com.