Mobile content provider Xurpas Inc. said it has invested nearly $1 million (P44.45 million) in a 4.5-percent stake in a US-based tech company that specializes in search engine innovations and development, as part of its global growth strategy.
Xurpas’ board of directors approved on Monday an investment of $999,999 (about P44.45 million) in the mobile content provider’s acquisition of 666,666 shares in California-based search engine specialist Quick.ly Inc., priced at $1.50 apiece.
This is Xurpas’ fifth acquisition since its initial public offering in November last year. It previously acquired a 31.52-percent stake in Singaporean game developer MatchMe Pte. Ltd. for $1.4 million (P61.6 million); a 49-percent stake in Indonesian IT firm PT Sembilan Digital Investama for $245,000 (P10.9 million); a 51-percent controlling stake in employee benefits management firm Storm Flex Systems Inc. for $4.3 million; and a 21.7-percent interest in Singaporean IT firm Altitude Games PTE Ltd. for $741,000.
“Xurpas seeks to introduce truly innovative products in its aggressive expansion throughout Southeast Asia. This most recent investment in a company with unique, cutting edge mobile search technology from one of California’s hottest technology hubs furthers this goal,” the company said in a disclosure to the Philippine Stock Exchange.
The investment is expected to enable Xurpas to offer a more diversified portfolio of mobile products such as an innovative search technology being developed by Quick.ly, it added.
Incorporated on Jan. 13, 2015, Quick.ly is a tech firm based in Pasadena, California, engaged mainly in the development of search engines. It is also operating Idealab, which is a creator and operator of technology businesses in Pasadena.
In January to March this year, Xurpas posted 27 percent growth in net income after tax to P59.2 million from P46.7 million a year ago, with revenues expanding 52 percent to P132.2 million from P86.76 million in the same period last year.
This is on track with the P379-million net income guidance set by SB Equities Inc. for Xurpas this year on the back of its aggressive Southeast Asia expansion. SB Equities is a subsidiary of Security Bank Corp., which also holds SB Capital Investment Corp., Xurpas’ underwriter for its IPO last year.
Xurpas also specializes in the creation and development of digital products and services for mobile end-users, as well as the creation, development and management of proprietary platforms for mobile operators. It has two business segments: gaming and enterprise, which is focused on telecommunications solutions.
It specializes in “casual game communities” in which prepaid subscribers can gain unlimited access to 15 games that can be played with multiple online subscribers for a minimum of P5.