Consumer technology provider Xurpas Inc. has completed the acquisition of a majority stake in Yondu Inc., a wholly-owned unit of Globe Telecom Inc.
Xurpas paid P900 million in cash for the original subscription and purchase of Yondu shares owned by Globe totaling 22,950 shares, or 51 percent, at a valuation of P39,215 per share after signing the subscription agreement and deed of absolute sale.
“The investment solidifies the Globe and Xurpas partnership in the mobile Internet and digital space and will transform Yondu into a regional arm for digital content distribution and other technology-driven services,” Xurpas said.
Yondu in 2014 reported stand- alone revenues and net income of P854 million and P251 million, respectively.
Xurpas, which conducted a highly successful initial public offering in 2014, expanded regionally, acquiring and investing in various content and distribution companies to increase its digital footprint across Southeast Asia.
The acquisition of Yondu spurred Xurpas’ expansion beyond the Philippines.
“Globe has been our strongest partner in the Philippines and the investment into Yondu strengthens our joint capabilities to bring world class digital products to the global audience” Xurpas chief executive Nix Nolledo earlier said.
Globe built Yondu into a strategic platform for media and content innovation and. Globe president and chief executive Ernest Cu earlier said “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. Their track record in building businesses centered on consumer content will round out the technical and innovative capabilities of Yondu,” he said.
Xurpas, which was listed in the Philippine Stock Exchange in December 2014, made four strategic acquisitions with a combined investment of $6.7 million.
These include a 21.78-percent interest in Singapore IT company Altitude Games PTE Ltd.; 49 percent of PT Sembilan Digital Investama, owner of the Indonesian mobile content company PT Ninelives Interactive; 51 percent of Storm Flex Systems Inc.; and most recently a 31.52-percent stake in MatchMe Pte. Ltd., a Singapore-based mobile and Web tournament games platform.
Xurpas said it would continue to invest in mobile content service segment as the key driver of the business.