Sagteс Finalizes Strategic AI Acquisition to Accelerate SaaS Revenue and Multi-Sector AI Deployment

Rhea-AI Summary

Sagtec Global Limited (NASDAQ: SAGT) has signed a definitive agreement to acquire 80% of Smart Bridge Technology, a profitable agentic AI software company. Smart Bridge, which reported a US$2.1M net profit in FY2024, offers advanced AI capabilities in behavioral analytics, fraud detection, and decision automation. The acquisition targets a combined total addressable market of US$130B across retail, fintech, and hospitality sectors. The deal aligns with Sagtec's strategic shift to an AI-first, SaaS-driven model, enabling immediate integration of AI capabilities into their existing hospitality and POS infrastructure. The company plans to launch its first AI-powered SaaS modules in Q3 2025, focusing initially on the hospitality segment before expanding into fintech and logistics through its existing distribution network.

Positive

• Acquisition is immediately earnings-accretive with Smart Bridge's proven profitability (US$2.1M net profit in FY2024)
• Large market opportunity with combined TAM exceeding US$130B across multiple sectors
• Strategic expansion into high-margin SaaS revenue streams through AI integration
• Immediate access to enterprise-ready AI technology and cross-vertical deployment capabilities

Negative

• Acquisition still subject to regulatory approvals and closing conditions
• Integration risks and challenges in merging different technology platforms
• Only acquiring 80% stake, leaving potential minority interest conflicts

Insights

M&A and Technology Investment Analyst

Sagtec's acquisition of profitable Smart Bridge adds AI capabilities, expands addressable market, and accelerates SaaS revenue transition.

Sagtec's 80% acquisition of Smart Bridge Technology represents a strategic transformation from hardware-focused operations to a higher-margin SaaS business model. The deal brings immediate financial benefits as Smart Bridge generated $2.1 million in net profit for FY2024, making this acquisition earnings-accretive from day one.

What's particularly valuable is how this transaction positions Sagtec across multiple high-growth AI markets. The combined entity can now target a total addressable market exceeding $130 billion across retail ($43 billion), SME-focused AI software ($25 billion), and intelligent POS/behavioral analytics ($65 billion).

Smart Bridge's agentic AI capabilities in behavioral analytics, decision automation, and real-time forecasting complement Sagtec's existing hospitality and POS infrastructure. This creates an integrated AI stack that can be monetized through high-margin subscription modules – a fundamental improvement to Sagtec's business model.

The planned Q3 2025 launch of AI-powered SaaS modules should create a new recurring revenue stream, starting with hospitality and expanding to fintech and logistics through Sagtec's distribution network. This transition from one-time sales to recurring revenue could significantly enhance revenue predictability and investor confidence in long-term growth prospects.

Definitive Agreement Signed to Acquire 80% of Smart Bridge Technology, a Profitable Agentic AI Platform

KUALA LUMPUR, Malaysia, June 20, 2025 (GLOBE NEWSWIRE) -- Sagtec Global Limited (NASDAQ: SAGT) (“Sagtec” or the “Company”), a next-generation provider of customizable AI and automation platforms, today announced the signing of a definitive Share Sale Agreement (SSA) to acquire an 80% equity stake in Smart Bridge Technology Limited (“Smart Bridge”), a rapidly scaling agentic AI software company with proven profitability. 

The acquisition reinforces Sagtec’s strategic shift into an AI-first, SaaS-driven growth model. Closing remains subject to customary regulatory approvals and conditions.

Profitable AI Acquisition to Fuel SaaS Margin Expansion

Smart Bridge brings a profitable, enterprise-ready AI platform, having reported a net profit of US$2.1 million for FY2024. With successful deployments across fintech, retail, and logistics, its proprietary agentic AI engine offers:

• Advanced behavioural analytics and fraud detection
• Intelligent decision automation
• Real-time pricing, demand forecasting, and optimization tools
  

These capabilities seamlessly complement Sagtec’s hospitality and point-of-sale (POS) and hospitality infrastructure, enabling immediate integration and monetization through a unified AI stack.

Sagtec expects the acquisition to be immediately earnings-accretive, while accelerating its rollout of high-margin, subscription-based AI modules. Key applications include:

• AI-powered upselling engines and dynamic menu optimization
• Behavioural anomaly detection and real-time fraud prevention
• Predictive inventory automation and demand planning
• Modular AI toolkits adaptable for logistics, fintech, and hospitality sectors

This acquisition unlocks access to a combined total addressable market (TAM) exceeding US$130 billion. According to Markets and Markets, the global AI in retail market is projected to reach US$43 billion by 2032, driven by automation and personalized customer engagement. IDC forecasts that the SME-focused AI software segment will surpass US$25 billion as smaller enterprises increasingly adopt cost-effective intelligent tools. Meanwhile, Grand View Research estimates the intelligent point-of-sale (POS) and behavioral analytics market will exceed US$65 billion, fueled by digital transformation and enterprise optimization.

“This acquisition delivers the intelligence layer our platform needed. With Smart Bridge, we can now scale high-margin, cross-vertical AI solutions across our client base and unlock exponential value,” said Kevin Ng, Chairman, Executive Director, and Chief Executive Officer of Sagtec.

Strategic Integration and Product Launch Set for Q3 2025

Following the closure of the transaction, integration will begin immediately. Sagtec plans to launch its first AI-powered SaaS modules in the third quarter of 2025, beginning with the hospitality segment and expanding into fintech and logistics through its existing distribution network.

The transaction supports Sagtec’s commitment to driving scalable, recurring SaaS revenue, executing a disciplined AI-focused M&A strategy, and delivering long-term margin expansion and shareholder value creation.

The Company will provide further updates on its product roadmap, earnings impact, and regional expansion strategy during its upcoming half-year investor call.

About Sagtec Global Limited

Sagtec is a leading provider of customizable software solutions, primarily serving the Food & Beverage (F&B) sector. The Company also offers software development, data management, and social media management to enhance operational efficiency across various industries. Additionally, Sagtec operates power-bank charging stations at 300 locations across Malaysia through its subsidiary, CL Technology (International) Sdn Bhd.

For more information on the Company, please log on to https://www.sagtec-global.com/.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable U.S. securities laws. These statements are not historical facts, but rather are based on the current expectations, assumptions, and projections of Sagtec Global Limited (the “Company”) regarding future events. Forward-looking statements are generally identified by words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “projects,” “seeks,” “may,” “will,” “should,” “could,” “estimates,” “potential,” or similar expressions, including the negative thereof.

These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the Company’s ability to expand its regional presence, scale its Robotics-as-a-Service (RaaS) and Software-as-a-Service (SaaS) offerings, strengthen its AI software and automation infrastructure platforms, and commercialize its AI-powered service robotics; as well as broader risks relating to macroeconomic conditions, geopolitical developments, global health crises, competitive dynamics, and evolving data privacy and cybersecurity regulations.

The Company disclaims any obligation to update or revise any forward-looking statements contained herein, whether as a result of new information, future events, or otherwise, except as required under applicable law. Investors are cautioned not to place undue reliance on any such forward-looking statements.

Further information on these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission.

Contact Information:

Sagtec Global Limited Contact:
Ng Chen Lok
Chairman, Executive Director & Chief Executive Officer
Phone: +6011-6217 3661
Email: info@sagtec-global.com

FAQ

What is the value of Sagtec's acquisition of Smart Bridge Technology?

The specific acquisition value was not disclosed in the press release, though Smart Bridge reported a net profit of US$2.1 million for FY2024.

When will SAGT launch its first AI-powered SaaS modules?

Sagtec plans to launch its first AI-powered SaaS modules in the third quarter of 2025, starting with the hospitality segment.

What is the total addressable market (TAM) for SAGT after the Smart Bridge acquisition?

The combined total addressable market exceeds US$130 billion across retail, fintech, and hospitality sectors.

What are the main AI capabilities that Smart Bridge brings to Sagtec?

Smart Bridge brings advanced behavioral analytics, fraud detection, intelligent decision automation, real-time pricing, demand forecasting, and optimization tools.

How will the Smart Bridge acquisition affect SAGT's earnings?

The acquisition is expected to be immediately earnings-accretive while accelerating the rollout of high-margin, subscription-based AI modules.