iiG turns to M&A deals to capture new digital transformation business

I&I Group Public Co Ltd (iiG), a Thai IT consultancy with over 30-year experience, aims to complete 2 merger & acquisition (M&A) deals next year to expand its digital transformation business platform.

In addition, the company is conducting a feasibility study to invest in CLMV countries (Cambodia, Laos, Myanmar, Vietnam) and expects to achieve a revenue growth target of 50% for 2023.

Somchai Mekasuvanroj, CEO of iiG told the latest extraordinary shareholders’ meeting that the company’s M&A strategy will quickly further expand its consultancy business as more enterprises adopt the digital transformation process.

“iiG is seeking potential business alliances to create synergy covering experts for various technologies in order to quickly increase our competencies to meet the needs of clients.  During this period, virtually every business needs to transform digitally.  Currently, we are negotiating with 2 potential partners and expect to conclude the agreements soon”, Somchai said.

iiG’s M&A strategy has been implemented since the company was listed on  the Market for Alternative Investment (MAI) in August 2020.  Last year, the company joined hands with Viriya Property Co Ltd to develop a digital insurance platform.

In addition, iiG invested in Diginative Co Ltd to expand Customer Relationship Management (CRM) and Customer Experience Management (CXM) businesses.  This year, the company also acquired  Lansing Business System Co Ltd, another IT consultancy, in a deal worth Baht 331.45 million, accounting for 51% of registered capital. The transaction was already approved by iiG’s extraordinary shareholders’ meeting.  It will increase iiG’s overall revenue as Lansing has been leading software development, outsourcing and IT staffing with more than 12 years of experience.

At the recent shareholders’ meeting, iiG’s registered capital was also increased from Baht50 million to Baht 56.86 million with an issue of 13.72 million common shares.  Of the newly issued shares, 8.72 million shares were offered in a private placement to Lansing in a share swap arrangement.

Somchai said the outsourcing services have bright prospects not only in Thailand but around the world because most organizations have to transform digitally.  This has resulted in the shortage of IT staff.  In addition, the management team and staff of Lansing has expertise in healthcare technology (HealthTech) so they are well-positioned to serve major hospital chains and healthcare companies in Thailand.

At present, Lansing’s TrakCare system is a world-class technology for Hospital information System (HIS),  which is ranked among the world’s top 4 systems.   Most leading hospitals in Thailand have been using TrakCare, which includes healthcare application for online doctor appointments, online patient register e-KYC, health report or e-Booklet.  In addition, the system also includes LIS interface, PACS interface, step count with Apple/Android device, telehealth system, e-commerce interface for both major private and public hospitals.

“Thailand has a lot of potential in healthcare and wellness industry as it can be a world-class center.   The M&A deal involving Lansing will allow iiG to develop more healthcare platform for service providers in Thailand.  In addition, we can expand into other regional Asean markets.

At present, Lansing has a staff of nearly 300.  It will increase to 400 next year. 

In term of revenues, iiG is expected to record Baht 900-950 million this year and revenue projection for next year is Baht 1.4-1.5 billion.  Regarding Lansing, this year’s revenue is forecasted at Baht 250 million and next year projection is Baht 300 million.

Regarding another JV, I&I Venture (iiV), a new AI-based digital insurance platform for motor vehicles will be launched later this year, using Software-as-a-Service (SaaS) for motor inspection and claims via app to increase speed and convenience for customers.

Another platform is for healthcare insurance using the Voice QC contact center technology to measure customer satisfaction so that service provider can analyse conversations between customer and the contact center to improve service quality.   This is in accordance with the regulations of the Office of  Insurance Commission.  

Regarding iiG, the company has been providing IT consulting services for the past three decades with a focus on digital transformation covering Enterprise Resource Planning (ERP), Business Spend Management (BSM), Customer Relationship Management (CRM), Customer Experience Management (CXM), Business Communication on Cloud, Data Analytic and Data Management, Placement services.