Xurpas Inc, the first and only listed startup firm in the Philippines, has made its third acquisition by buying a 49 per cent stake in Indonesian IT firm PT Sembilan Digital Investama (SDI)
The Philippine-based mobile content maker informed the stock exchange that it invested $245,000 (P11 million) in the acquisition to gain access and control of SDI’s mobile content and distribution company Ninelives Interactive (Ninelives).
The transaction marks the entry of Xurpas in the Indonesian market, as it continues to execute its strategy of expanding distribution channels for its products in Southeast Asia.
Xurpas president and CEO Nix Nolledo described Indonesia as one of the most exciting mobile markets in the world with close to 300 million subscribers.
“Just like the Philippines,
majority of users are still on pre-paid but they are rapidly moving away from fixed connections in favor of smartphones and mobile data,” Nolledo said. “The striking similarity between the Indonesian market and ours makes it an ideal location to establish another stronghold.”
Nolledo added Xurpas continues to talk to companies to hasten its strategic expansion in Asia, activate other untapped markets, and open revenue gateways.
Ninelives is barely in it’s third year in the mobile content development and distribution delivery business, the company has existing contracts with top mobile carriers in Indonesia such as Telkomsel with a 138-million subscriber base, as well as XL Axiata and Indosat, with around 63 million and 55 million subscribers, respectively.
The purchase of SDI, Ninelives, gives Xurpas access to a huge market for its games and services. SDI is the third company acquired by Xurpas since its initial public offering in December 2014.
Xurpas’ book value is P1,490.56 million or P0.87 per share based on its 2014 audited financial statement.
Xurpas did the transaction exactly one month after buying a 51 per cent controlling stake in local tech firm Storm Flex Systems Inc for P189.6 million ($4.3 million). It did its first company acquisition with Singaporean tech company Altitude Games with shares worth P33 million ($740,800) in December, less than two weeks after its P1.36 billion ($30.4 million) IPO debut.
Xurpas’ last traded price was at P10.74, up by 1.70 per cent or P0.180 to Wednesday’s P10.56.