Listed technology firm Cirtek Holdings Philippines Corp has concluded the purchase of a 49 percent stake in Multipay Corporation, a provider of back-end and front-end payment solutions, Cirtek told the Philippine Stock Exchange on Thursday.
Cirtek paid an initial Php100 million ($1.96 million) to acquire 441,000 shares or equivalent to 49 percent of the total issued and outstanding capital stock of Multipay. Cirtek is setting aside additional support for Multipay’s future projects and development. The share purchase agreement was signed on Wednesday.
Cirtek Group President and Vice-Chairman Roberto Jaunchito Dispo said the company’s investment in Multipay “signals our entry into the fast-growing ecommerce and fintech space.
The acquisition was in line with the company’s strategy to expand its business and leverage on its accumulated expertise in technology, particularly in the wireless / broadband transmission business and ecommerce, according to Cirtek’s disclosure.
Multipay Corporation is a homegrown corporation engaged in the business of development, promotion, and marketing of technology, systems solutions, and applications that can be utilized as a platform for connectivity, processing, and delivery of electronic services.
Cirtek Holdings is the holding company of Cirtek Electronics Corporation and Cirtek Electronics International Corporation. It is primarily engaged in providing complete manufacturing solutions for value-added, integrated radio frequency, microwave, and millimeter wave technology products.
Last December, Cirtek raised $67 million from its maiden issuance of dollar-denominated preferred securities. Proceeds from the preferred shares offering will be used to partly fund strategic acquisitions, and for debt retirement, capacity expansion, and research and development, the company said.
Cirtek believes its ability to become not only a manufacturing-centered business, but also a technology and software-focused enterprise, will allow it to offer a wider range of products and services to its clients, to continuously enhance its product portfolio, and to expand its market reach, not only to existing customers but to new consumers as well.