THAILAND Trends and Developments Contributed by: Nuchaya Timrat, Naris Asavathongkul and Piyachai Wijitvongtong, Baker McKenzie
exemplifies this strategic approach, followed by LINE MAN Wongnai’s acquisition of Living Mobile Co., Ltd., a prominent Thai software company that has revolutionised the local res- taurant industry with its POS systems, as well as its acquisition of Rabbit LINE Pay, which fur- ther supplements the payment system within its ecosystem. Also, SCB X Plc. sold Purple Ventures Co., Ltd., the platform provider of the Robinhood appli- cation, to a group of investors led by the Yip In Tsoi Group. The Yip In Tsoi Group, with its extensive experience in IT digital solutions and high technology, aims to leverage its expertise to further expand Robinhood’s capabilities and market reach. Notably, the group has not pre- viously operated in the food delivery platform business, marking a significant diversification of their portfolio. These M&As demonstrate how companies are broadening their ecosystems, improving opera- tional capabilities, and increasing competitive- ness. By acquiring similar or adjacent business- es, they are expanding their service offerings and improving their market positions in an ever- changing digital ecosystem. Other Tech Trends Outlook Looking ahead to 2025, the M&A sector should see a positive rebound. Smaller M&A set to bounce back While high-profile acquisitions in areas such as food delivery platforms continue to attract public attention, the M&A landscape anticipates a rise in smaller transactions. These bite-sized acquisi- tions are gaining appeal due to their compelling value propositions, speed of integration, and ability to optimise the acquired target value. Acquiring a large technology company provides
more potential scrutiny under merger control regulations than acquiring a small company. If this trend continues, Thailand’s M&A landscape will become broader and more dynamic, with transactions ranging from small to mid-sized to mega. Back-office software as a service remains attractive Another type of tech acquisition that has occurred and gained in value is Software as a Service (SaaS), which has already featured in a large number of M&A transactions. Looking ahead, we anticipate seeing more of these trans- actions in the future. The SaaS acquisition trend is an important indi- cator of where true value is being created and recognised in the IT industry. As organisations continue to digitise and streamline their pro- cesses, the software companies that provide the foundation for this change are likely to remain in high demand in the M&A market. Regulators in Support of Tech-related Investment The BOI continues its support in the tech-related industry with its continuous grant of tax and non- tax incentives, subject to criteria and promotion schemes to promote targeted investment in Thai- land. The investment in the tech-related industry in continuing support by the BOI includes: • development of software, digital platforms, and digital content; • digital infrastructure (data centres, cloud services, and international high-speed marine communication circuits); and • other digital ecosystem-supported busi- nesses.
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