Globe Telecom Inc. is buying back an IT solutions company from Xurpas Inc. for P501 million.
The company said its board approved the acquisition of 51 percent of Yondu Inc., equivalent to 22,950 shares, from Xurpas.
Xurpas prior to the transaction held 51 percent of the shares in Yondu, while Globe owned 49 percent.
The board of Globe also approved the signing of the corresponding deed of sale of shares and other related definitive agreements.
“Bringing Yondu into the Globe value chain will promote synergies and strengthen the position of our enterprise business. We believe in Yondu’s growth prospects as we leverage on its capabilities in a robust IT industry,” said Globe president and chief executive Ernest Cu.
Yondu was a leading content developer and provider of mobile value-added services and information technology services back in 2015 when it was acquired by Xurpas.
It has since then evolved to become a top IT solutions company in the Philippines, expanding its product portfolio to provide managed services software development and turkey solutions.
The transaction is consistent with Globe’s strategy of developing its ICT capabilities responsive to the changing needs of its customers.
Yondu’s strong IT core competencies combined with Globe’s digital expertise will strengthen the value proposition of products and services catered to enterprise clients
Xurpas was engaged in the business of developing and distributing celebrity-themed mobile games.
But the mobile consumer business of Xurpas Group substantially declined due to the new policies implemented by telecommunications firms on all VAS providers.
Considering that Xeleb Technologies Inc. and Xeleb Inc. currently have no significant contribution to the Xurpas Group, the board of Xurpas approved their dissolution.