Sagtec Accelerates AI Expansion with Proposed Acquisition of Agentic AI Software Company

Rhea-AI Summary

Sagtec Global Limited (NASDAQ: SAGT) has signed a term sheet to acquire Smart Bridge Technology Limited for US$17.6 million (10x P/E ratio). The acquisition aims to transform Sagtec from a data systems provider into a comprehensive AI technology leader. Smart Bridge, which reported a net profit of US$2.1 million, brings proven AI capabilities that will enhance Sagtec's existing POS and backend platforms serving thousands of F&B outlets and retailers.

The strategic acquisition will enable Sagtec to deliver automated business intelligence, launch AI-driven optimizations, and expand into new verticals including logistics, fintech, and hospitality. The combined addressable markets, including AI retail (US$43 billion by 2032), SME-focused AI software (US$25 billion), and intelligent POS analytics (US$65 billion), present significant growth opportunities for the company.

Positive

• Strategic acquisition valued at US$17.6 million expands Sagtec's capabilities from data systems to full AI solutions
• Smart Bridge demonstrates strong financial performance with US$2.1 million net profit
• Access to multiple high-growth markets with combined TAM exceeding US$133 billion
• Expansion into new verticals including logistics, fintech, and hospitality
• Enhancement of existing F&B business with AI-driven menu optimization and fraud analytics

Negative

• Acquisition still subject to definitive agreement and closing conditions
• 10x P/E ratio acquisition price might be considered relatively high
• Integration challenges may arise when combining different technology platforms

News Market Reaction

-3.24%

1 alert

-3.24% News Effect

On the day this news was published, SAGT declined 3.24%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

KUALA LUMPUR, Malaysia, May 29, 2025 (GLOBE NEWSWIRE) -- Sagtec Global Limited (NASDAQ: SAGT) (“Sagtec” or the “Company”), a leading provider of customizable software solutions, today announced that it has signed a term sheet for the proposed acquisition of Smart Bridge Technology Limited (“Smart Bridge”), a fast-growing agentic AI software Company. Under the terms of the proposal, Sagtec intends to acquire Smart Bridge at approximately 10 times the price-to-earnings (PE) ratio for consideration of US$17.6 million, subject to the execution of a definitive agreement and customary closing conditions.

This proposed acquisition is set to transform Sagtec from a data systems provider into a full-spectrum AI technology leader, capable of delivering predictive, real-time intelligence to businesses across Asia. With Smart Bridge’s proven AI engine and high-margin software business, Sagtec positions itself at the intersection of AI innovation and real-world commercial application, unlocking a multi-billion-dollar total addressable market (TAM) in behavioral analytics, decision automation, and intelligent enterprise software.

Sagtec currently supports thousands of F&B outlets and retailers through its industry-leading point-of-sale (POS) and backend platforms, generating vast volumes of structured consumer and transaction data. The acquisition of Smart Bridge will supercharge Sagtec’s ecosystem, enabling the Company to:

• Deliver automated business intelligence to its F&B clients
• Launch AI-driven menu optimization, upselling strategies, and supply forecasting
• Detect and prevent revenue leakage via behavioral fraud analytics and anomaly detection
• Enter new verticals including logistics, fintech, and hospitality with customizable AI modules

With this proposed acquisition, Sagtec broadens its TAM beyond retail into high-growth sectors where predictive analytics and behavioral intelligence are crucial. Markets and Markets projects the global AI retail market will reach US$43 billion by 2032, International Data Corporation estimates the SME-focused AI software market will exceed US$25 billion, and Grand View Research forecasts the intelligent POS and behavioral analytics market to surpass US$65 billion. Together, these markets offer Sagtec significant opportunities to leverage Smart Bridge’s AI capabilities and expand into new, monetizable verticals.

This initiative aligns with the rapid expansion of the Artificial Intelligence sector, driven by increasing digital adoption, growing enterprise awareness of AI’s transformative potential, and rising reliance on mobile platforms. Concurrently, demand for mobile-first, intelligent enterprise software is surging, reshaping how businesses compete and operate in an increasingly digital landscape.

Smart Bridge has demonstrated strong financial and operational performance, reporting a net profit of US$2.1 million, showcasing the high efficiency and scalability of its AI-driven business model. The company continues to expand its growing client base across Asia, with its scalable AI engine successfully deployed in multiple high-volume environments, further validating the commercial viability and adaptability of its technology.

“This acquisition accelerates Sagtec’s vision of becoming the AI-first enterprise platform of the future. We’re not just building tools, we’re engineering intelligence that empowers everyday operators to predict, optimize, and monetize every transaction. It marks a transformative chapter for Sagtec, where we move beyond facilitating business to fundamentally reshaping it, unlocking new revenue streams and driving smarter, data-driven growth across industries,” said Kevin Ng, Chairman, Executive Director, and Chief Executive Officer of Sagtec.

About Smart Bridge Technologies Limited

Smart Bridge Technologies is a Malaysian-based AI and software development company providing agentic software, enterprise-grade IT solutions, and digital transformation services. The company specializes in AI-powered automation, systems integration, and tailored digital consulting.

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/.

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 acquisition price for Smart Bridge by Sagtec (SAGT)?

Sagtec (SAGT) plans to acquire Smart Bridge for US$17.6 million, valued at approximately 10 times the price-to-earnings ratio.

How much profit did Smart Bridge report before the SAGT acquisition?

Smart Bridge reported a net profit of US$2.1 million prior to the proposed acquisition by Sagtec.

What new markets will Sagtec (SAGT) enter after acquiring Smart Bridge?

After acquiring Smart Bridge, Sagtec will expand into logistics, fintech, and hospitality sectors with customizable AI modules.

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

The combined TAM includes AI retail (US$43B by 2032), SME-focused AI software (US$25B), and intelligent POS analytics (US$65B), totaling over US$133 billion.

How will the Smart Bridge acquisition benefit Sagtec's existing F&B clients?

The acquisition will enable Sagtec to provide automated business intelligence, AI-driven menu optimization, upselling strategies, supply forecasting, and fraud analytics to its F&B clients.