Hong Kong, China, February 27, 2019 /Xinwengao.com/ - #8226;Acquisition is PAT and free cash accretive from day one
#8226;Marks Thomas Cook India Group’s entry into an adjacent sector, complementary to its travel travel related services portfolio
Thomas Cook India Group, the leading integrated travel services group, has announced its acquisition of a 51% stake in Digiphoto Entertainment Imaging (DEI), one of the world’s leading imaging solutions and services providers at an enterprise value of US $40.6 Million (Rs 289 crores). The transaction is subject to regulatory approvals and customary closing conditions.
The acquisition marks the Thomas Cook India Group’s entry into an adjacent sector, complementary to its travel travel related services portfolio and is both PAT and free cash accretive from day one.
Established in 2004, Digiphoto Entertainment Imaging is a technology driven company with offices in Hong Kong, Singapore, Dubai, Mumbai, Orlando, and Kuala Lumpur. DEI focuses on imaging solutions for the attractions industry with a robust end-to-end turnkey model by providing equipment, software, talent and operational expertise consultation to its business partners.
With a strong network of over 120 partners, DEI is present at more than 250 venues spanning over 14 countries (Hong Kong SAR, Singapore, UAE, Macau SAR, China, USA, Malaysia, Thailand, Indonesia, Mauritius, Maldives, Egypt, India and Kuwait), and has completed 3.6 million transactions in 2018.
Since 2012 DEI has tactically chosen Singapore as its regional headquarters in the Far East. This approach paid off resulting in DEI successfully securing the majority share of imaging partnerships in Singapore. The importance of this location was reinforced by the successful extension of their 10-year partnership with Wildlife Reserves Singapore and One Faber Group – operator of several attractions in Sentosa. DEI’s partnership with Marina Bay Sands was also renewed recently, strengthening their presence in Singapore.
Having a strong foot hold in South East Asia, DEI is aggressively expanding their presence into Greater China, including Hong Kong SAR. DEI’s proprietary imaging solution has enabled payment gateway localization for the local Chinese market expanding into AliPay and WeChat Pay. Their local hosting and content distribution is in compliance with local privacy policies, allowing guests to share their memories on Chinese social media channels like We Chat, Sina Weibo, QQ and Qzone. Based on current tourism trends, DEI is aggressively viewing the Far East as a pivotal region and a major contributor of revenue over the next 5 years. DEI intend to focus on rapid growth over the preceding years in this belt.
DEI’s partner attractions encompass waterparks, theme parks, aquariums, towers and resorts, including iconic attractions in Hong Kong (Ngong Ping 360), Singapore (Universal Studios Singapore, Marina Bay Sands, Singapore Zoo), Macau (Macau Tower, The Venetian), the UAE (At The Top Burj Khalifa, Ski Dubai, Wild Wadi Waterpark, Warner Brothers, Ferrari World), Malaysia (PETRONAS Twin Towers, Resorts World Genting), China (Atlantis Sanya, Chimelong Safari Park), India (Ramoji Film City, Imagica, Wonderla Holidays Ltd.), Maldives (Taj Exotica, W Retreat Spa, Shangri-La Villingili), Mauritius (St. Regis Mauritius Resort, Shanti Maurice Resort Spa), Indonesia (Waterbom Bali, Bali Zoo, Trans Studio), Egypt (Ski Egypt, KidZania), Thailand (Ramayana Water Park, Vana Nava Water Jungle), USA (Hard Rock Caf#233; New York, Mango’s Tropical Caf#233; and Gaylord), to name a few.
In 2017, DEI launched KlassAkt, its school photography arm, and has already partnered with more than 90 schools across the UAE and India, including the prestigious GEMS group of schools in the UAE, the Oberoi International School, Jamnabai Narsee International School and Aditya Birla World Academy in Mumbai, India.
Madhavan Menon, Chairman and Managing Director, Thomas Cook (India) Limited said, “Our acquisition of DEI, a global imaging solutions and services giant, presents the Thomas Cook India Group an opportunity to participate in an exciting new business space, adjacent to our core travel services portfolio that is both PAT and free cash accretive from day one. DEI is an entrepreneurial success story with an impressive and proven track record of leadership, growth and profitability.”
He elaborated, “With several key markets in common, the addition of Ram and his team at DEI to our family, also presents new synergistic opportunities leveraging our travel services across 25 countries. We see an immediate opportunity for our outbound customers from India and Hong Kong, as well as our inbound and DMS customers across our global network. With the growing demand for experiential travel and social sharing, DEI’s partnerships with iconic attractions, theme parks, water parks and resorts will further enhance our travel services portfolio in line with our philosophy of creating long term shareholder value.”
K.S. Ramakrishnan, founder CEO and President of Digiphoto Entertainment Imaging said, “Our synergy with Thomas Cook India Group in the travel and tourism ecosystem strengthens DEI’s position in our existing markets whilst giving us immense reach to expand. DEI is leading the digital transformation of the guest photo journey through NFC, facial recognition and other state of the art proprietary technology enabling the guest to receive and share their memories in real time. We are proud to be part of a globally renowned travel and tourism leader, the Thomas Cook India Group. Innovation being key to DEI’s core entrepreneurial spirit with focus on long-term partnerships aligns us perfectly with the vision and ethos of Fairfax Financial Holdings Limited.”