AirAsia cancels $10m acquisition deal for Gojek Thailand’s fintech unit

AirAsia Digital has terminated its proposed US$10 million acquisition deal for Velox Fintech, a unit of Gojek Thailand. The Malaysia-based firm, however, completed the acquisition deal for another business of Gojek Thailand, Velox Technology, for US$40 million, according to AirAsia’s filings for the third quarter of 2021.

Photo credit: AirAsia

Details as to why the deal for the Velox Fintech acquisition did not push through weren’t disclosed in its filings.

Tech in Asia has reached out to AirAsia and Gojek representatives for comment.

The 100% acquisition of Velox Technology was completed on July 27. AirAsia said that the acquisition resulted in a goodwill of 129.3 million ringgit (US$30.8 million), but was subject to a purchase price allocation exercise that was to be completed within 12 months.

In July, AirAsia announced the proposed acquisition of Gojek’s Thailand operations for a total of US$50 million. The deal reportedly involved a share swap between the two companies. In return for its Thailand arm, Gojek would get a stake in AirAsia’s super-app business.

AirAsia Superapp’s current valuation stands at US$1 billion.

See also: Tony Fernandes responds to critics of his AirAsia super-app gamble

The acquisition was expected to fuel AirAsia’s super-app ambitions. The company already offers services such as transportation, logistics, food and beverage, media, and retail.

For Gojek, the acquisition would have allowed it to focus its resources on its Vietnam and Singapore units.

Yesterday, AirAsia Food announced that it will enter the Indonesian market by early 2022. The food delivery business launched its Thailand operations after AirAsia acquired Velox Technology.

Currency converted from Malaysian ringgit to US dollar: US$1 = 4.19 Malaysian ringgit