Continuing on its acquisition spree, listed Philippine tech startup Xurpas Inc has picked up a 51 per cent stake in Globe Telecom’s wholly-owned subsidiary Yondu Inc, a content developer and provider of mobile value-added services and information technology services. Xurpas invested up to $19.2 million (P900 million) in the deal which is subject to certain closing conditions.
With this deal, Yondu becomes the seventh company in which Xurpas has invested in since its IPO (initial public offering) debut at the Philippine Stock Exchange in December 2014 where it raised $30.4 million. Xurpas is the first listed startup in the Philippines.
Xurpas’ acquisition of Yondu is part of its strategy to expand its digital footprint across Southeast Asia, targeting to invest mostly in various content and distribution companies. Both Xurpas and Globe expect the deal will transform Yondu into a regional arm for digital content distribution and other technology-driven services.
Globe president and CEO Ernest Cu said Xurpas’ track record in building businesses centered on consumer content will round out the technical and innovative capabilities of Yondu.
“Globe is very excited to be partnering with Xurpas in taking Yondu to the next level. Over the past few years, we have built the company into a great platform for media and content innovation and it is time to bring our aspirations regional. In keeping with our partnership model, we have chosen to work with Xurpas to make this happen,” Cu said.
Also read: Xurpas acquires 70% of Seer Technologies
“Globe Telecom has been our strongest partner in the Philippines and the investment into Yondu stengthens our joint capabilities to bring world class digital products to the global audience,” said Xurpas CEO Nix Nolledo.
Only last July, Xurpas launched its first company that it established “from the ground up” – the Xeleb Inc which is also the first celebrity games company in the Philippines.
Among Xurpas’ past investments and acquisitions include a 70 per cent stake in Seer Technologies Inc for $399,000; almost $1 million in US-based startup Quick.ly; $740,800 in 21.7 per cent stake in Singapore company Altitude Games; $4.3 million for 51 per cent controlling stake in Storm Flex Systems Inc; about $1.4 million in Singapore-based mobile and web tournament games platform MatchMe Pte Ltd; and $245,000 or 49 per cent shareholdings in Indonesian IT firm PT Sembilan Digital Investama (SDI).
Xurpas’ last trading price increased 1.08 per cent or P0.120 to close at P11.22, while Globe’s share price decreased 0.23 per cent or P6.00 and closed at P2,576.