Proposed acquisition creates one of the world’s largest virtual credits platforms for gamers; Razer to operate one of the largest e-payment networks in Southeast Asia; and allows Razer to significantly scale up its current business in Southeast Asia
Razer has announces its intention to fully acquire MOL Global, Inc. (“MOL Global”) through the acquisition of approximately 65.1% of MOL Global’s issued share capital for a cash consideration of approximately US$61M (HK$480M), representing the remaining shares in MOL Global not already owned by Razer, by way of a proposed statutory merger (“Merger”). Upon the completion of the Merger, MOL Global will become a wholly-owned subsidiary of Razer.
While the proposed Merger is subject to the approval of MOL Global’s shareholders, Razer has already obtained irrevocable undertakings from other major shareholders to vote in favour of the Merger which will, in combination with Razer’s current 34.9% stake, be sufficient to approve the Merger.
‘This acquisition will combine Razer’s zGold and MOL Global’s MOLPoints virtual credits, creating one of the largest virtual credits platforms for gamers in the world,” said Min-Liang Tan, co-founder and CEO of Razer. “Southeast Asia represents one of the highest GDP growth regions with one of the youngest demographics in the world. Additionally, given that MOL Global already runs one of the largest e-payments networks in Southeast Asia, the integration of MOL Global’s businesses represents an exciting new business segment with boundless potential that Razer can extend into. Over and above, we will be able to leverage on MOL Global’s leading technologies, as well as its massive network of content, customers and partners built over 17 years, and extend our existing businesses by capturing the fast-growing Southeast Asia region for Razer.”
Creating one of the largest virtual credits platforms for gamers in the world
Given the low credit card penetration in Southeast Asia, MOL Global’s unique offline-to-online payment model, with approximately 1 million offline payment points, already makes it the largest virtual credits platform for gamers in the region. This has enabled world-leading games companies such as Sony PlayStation Store SEA, Facebook Gameroom, Nexon and Wargaming to monetize their games and digital content in Southeast Asia.
Upon the completion of the Merger, Razer’s current zGold virtual credits business will be combined with MOL Global’s MOLPoints virtual credits business, creating one of the world’s largest virtual credits platforms for gamers under a single entity.
This will significantly accelerate and scale up the Services category within Razer’s gamer-focused ecosystem, allowing games and media companies to continue to further monetize their games and content worldwide on a singular platform which will benefit from the combined economies of scale.
One of the largest e-payment networks in Southeast Asia
MOL Global currently operates one of the largest e-payment networks in Southeast Asia, with its online payment gateway already utilised by some of the most prominent and fastest-growing companies such as Lazada, Grab and UNIQLO. MOL Global handled over US$1.1 billion of total payment value in 2017 through its e-payment network.
The proposed acquisition provides a springboard for Razer’s entry and accelerated growth in the new business category of e-payments, which will be complementary and accretive to Razer’s current business.
Expansion of Razer’s current business in Southeast Asia Southeast Asia is a region with one of the fastest GDP growth and youngest demographics in the world, and Razer seeks to seize the exciting market potentialthrough ramping up its investments in Southeast Asia, with the integration of MOL Global as the first of many to come. With the proposed acquisition, Razer will be able to leverage on MOL Global’s leading technologies, build on MOL Global’s extensive Southeast Asia presence and network, to extend and accelerate the growth of its existing ecosystem of hardware, software and services rapidly in the region, and capitalize on the robust growth of Southeast Asia.