DNeX buys majority stake in two Malaysian management consulting firms

30 January 2018 Consultancy.asia 3 min. read
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Malaysia-based company Dagang NeXchange Berhad (DNeX) has taken a majority stake in two management consulting firms in the country: Genaxis and Innovation Associates Consulting. 

Since its inception in 1970, DNeX has grown from a small trading firm into a listed conglomerate (on the Main Market of Bursa Malaysia) serving two key markets. Dagang Net Technologies specialises in information technology and eCommerce, with its infrastructure facilitating more than 100 million electronic transactions and RM1.8 billion worth of Customs duty payments annually. DNeX Energy is the firm’s energy and oil & gas arm, helping clients with, among other areas, technology services and solutions for oil exploration, energy generation and distribution, and management of processes. 

Last week DNeX revealed that it has entered into a conditional share sale and purchase agreement with Nuraslina Zainal Abidin to acquire 510,000 shares or a 51% stake in Genaxis for RM10 million. As part of the transaction, DNeX is granted a 60% stake in Innovation Associates Consulting (IAC). 

The move will, according to Datuk Samsul Husin, who is chairman of Dagang Net Technologies and executive deputy chairman of the group, significantly strengthen the firm’s IT and e-services business segment. “It will add value to the group's existing offerings in e-services for trade facilitation,” he remarked.

DNeX buys majority stake in two consulting firms

Innovation Associates Consulting is one of Malaysia’s largest home-grown consulting firms. The consultancy supports customers with a broad range of management consultancy services, including strategy, business transformation, programme management, workforce transformation, change management, outsourcing and leadership development. The majority of IAC’s approximately 250 employees are based across offices in Kuala Lumpur, with offices in Indonesia and Saudi Arabia serving the region as well. One of the most well-known projects IAC is overseeing is the implementation of the Government Financial and Management Accounting System (1GFMAS), which is expected to be fully implemented by May 2018. 

Based in Petaling Jaya, and also in the Selangor region, Genaxis is a business consulting firm that specialises in transformation initiatives. The consultancy, established in 2003, has worked for organisations and agencies such as the Royal Malaysian Customs Department, CIMB Group, Bank Muamalat Malaysia Berhad, Malaysia Productivity Corp, Lembaga Tabung Haji, Siemens, and Subang Jaya Municipal Council. 

“The consulting and accounting services know-how that we will gain through this acquisition will extend beyond trade facilitation to other verticals as well. We will continue to look for opportunities to provide leading edge e-services that can help organisations improve efficiency and effectiveness of their operations, and ultimately boost output and bottom line,” commented Samsul Husin. 

Meanwhile, last month graduates in Malaysia named the Big Four and two of the large US-origin strategy consultancies – McKinsey & Company and The Boston Consulting Group – as the top consulting firms firms to work for in the country.