Edison Evaluates AGBA and Triller's Strategic Acquisition

Edison Investment Research issued an analysis on April 26, 2024, regarding AGBA Group Holding's recent acquisition of Triller Corp., a global AI-driven social video platform. This acquisition, finalized on April 18, involves a complete stock transaction with Triller, which was independently valued at approximately $3.2 billion. Post-acquisition, AGBA estimates the valuation of the combined entity at $4 billion.

The deal results in AGBA shareholders owning 20% of the combined entity, while Triller shareholders will own 80%. Despite Triller being loss-making with FY23 revenues at $45 million, the combination with AGBA, which has a client base of over 400,000 and FY23 revenues of $54 million, is expected to yield significant business synergies. The strategy focuses on leveraging Triller’s technology in AI and digital marketing to expand AGBA's services in the Asian market and its fintech ventures.

AGBA projects breakeven status by Q4 2024 and trades at 3.4 times its FY23 EV/revenue. Since announcing the acquisition, AGBA's share price surged by 460%, giving the newly combined entity an implied valuation of approximately $832 million, or 8.4 times its FY23 pro forma revenue. This move marks a significant strategy aimed at growth and expansion in both entities’ market positions.