Fresh from raising P1.36 billion (US$30.4 million), through its maiden public offer earlier this month, Philippine mobile giant Xurpas Inc has opted for the inorganic expansion route, by acquiring a 21.7 per cent stake in the Singapore tech company Altitude Games for P33 million ($740,800).
According to the disclosure made by the company at the Philippine Stock Exchange (PSE), Xurpas will gain 24.7 million shares of the game developer at $0.03 per share, equivalent to $740,800 (P33 million).
Xurpas’s shares have surged P 0.490 (5.6 per cent) since its debut on the PSE on December 2. The company currently has a market cap of P14.9 billion. On Friday morning, the company’s share opened 8.89 per cent up from previous day’s closing . They were up 9.20 per cent, at the time of filing of this story.
The deal is part of Xurpas’ strategy to expand its regional footprint by servicing the fast growing mobile markets in South East Asia (SEA). The company plans to use part of its proceeds from its initial public offering (IPO) for this expansion.
The acquisition allows Xurpas exclusive access to the Altitude Games’ expertise in casual gaming.
According to Xurpas, Altitude Games will contribute to the portfolio of mobile content and services that they offer, particularly the development of games, applications, mobile services and other mobile content.
Based on the deal terms, Xurpas will have exclusive rights to distribute the game products of Altitude Games in SEA, beginning with the critically acclaimed Run Run Super V, which was just launched in the Philippines.
Founded by veterans of the SEA game industry, Altitude Games is one of the pioneers of mobile and PC game development in Philippines since early 2000. They have worked on games that have been downloaded more than 10 million times worldwide over mobile, PC, Mac, and console devices.
In Xurpas’ recent PSE debut, company president and founder Nix Nolledo said that the company hoping to expand business to Bangladesh, Indonesia and Thailand. “We will bring to the other countries the best of what Philippine technology can offer,” he had said.