SET-listed VGI Global Media Plc, a provider of media space for skytrains, has announced its acquisition of Rabbit Card from BTS Group, reports The Bangkok Post.
The acquisition was for $56 million (1.95 billion baht), an initiative to strengthen its media service business.
The VGI board approved the purchase of a 90% stake in Bangkok Smartcard System Co (BSS) and 90% in BSS Holdings, which operates the Rabbit Card business.
The transaction is expected to be completed by March 31 this year.
VGI’s chief executive Surachet Bamrungsuk said, “the acquisition will allow VGI to enter the e-payment business. The Rabbit Card is a payment tool for travelling on the skytrain and also allows users to buy food and beverage.”
VGI will acquire an e-wallet business through Rabbit Line Pay, a function embedded in the most popular instant messaging application Line, which boasts 33 million users. In the future, VGI will allow its users to buy products and services, as well as pay skytrain fares online.
The Rabbit Card business also entails other online businesses such as Rabbit Internet, including Rabbit Daily, which provides lifestyle content through a web portal. There is also Rabbit Finance, an online financial products comparison website.
VGI will leverage Rabbit’s various platforms so VGI will become a data centric media hypermarket to assist the company in utilizing data analytic capabilities.
The acquisition is expected to widen VGI’s consumer base to 25 million people a day. The Rabbit Card database has more than 7.2 million users, offering opportunities to conduct data analytics to support VGI’s sales, media production and planning.
A version of this appeared in The Bangkok Post on August 24. Read the full version here.