Thailand-based VGI Global Media has acquired nearly 90% stake of the Rabbit Card from BTS Group as part of its strategy to forays into the e-payment business.
The transaction valued at approximately THB1.95bn ($56m) will also enable the company to strengthen its media service business.
As per the terms of the agreement, VGI will buy the share from Bangkok Smartcard System Co (BSS) and BSS Holdings (BSSH), which own the Rabbit Card business.
The transaction is likely to be concluded by 31 March 2017.
The Rabbit Card is a payment tool used for travelling on the sky train. It also enables users to purchase products from food and beverage retailers. Currently, the Rabbit Card database has over 7.2 million users.
VGI CEO Surachet Bamrungsuk said: “This is a strategic move which allows VGI to revolutionize traditional advertising by raising the effectiveness and measurability of advertising campaigns.
“We will use Rabbit's rich database, which currently has more than 7.2 million users, to roll out data analytics to support VGI's media planning, production and sales, and to ensure clients benefit from the nationwide data-driven media network.
“Furthermore, this will open new windows for VGI to spur innovation and to move and synchronize with today's digital consumer and contemporary lifestyle.”
Separately, VGI will buy an e-wallet business through Rabbit Line Pay, a function embedded in the most popular instant messaging application Line, which has 33 million users.
The deal will allow users to purchase merchandise from online and brick-and-mortar retail stores. Possibly it will also allows VGI to extend services to include online payment for BTS SkyTrain fares and retail purchases within Rabbit Card's merchants network across the country through their mobile devices.