Mobile content provider Xurpas Inc has acquired 49-percent stake in Indonesian information technology firm PT Sembilan Digital Investema (SDI), the president of Xurpas said on Friday.
Nix Nolledo, who is also Xurpas chief executive officer, said the company signed on Thursday the term sheets to purchase 147 SDI shares at $1,666.66 per share for a total of $245,000 (about P10.9 million).
“Indonesia is one of the most exciting mobile markets in the world with close to 300 million subscribers, making it the fourth largest mobile market in the world,” Nolledo said.
The purchase was the third acquisition of Xurpas. It has acquired 51 percent controlling stake in employee benefits management firm Storm Flex Systems for $4.3 million, and a 21.7 percent in Singaporean IT firm Altitude Games PTE Ltd for $741,000.
Xurpas paid $145,000 upfront and the balance of $100,000 will given after signing of the terms and conditions of the purchase. SDI is the parent firm of mobile content and distribution company PT Ninelives and the purchase will give Xurpas control of Ninelives.
Nolledo said majority of users in Indonesia were still on pre-paid ”but they are rapidly moving away from fixed connections in favor of smartphones and mobile data.”
“The striking similarity between the Indonesia market and ours makes it an ideal location to establish another stronghold,” he said.
Nolledo said the company’s entry into Indonesia was part of its strategy to expand distribution channels for its products in Southeast Asia “and, in effect, Ninelives gives Xurpas access to a huge market for its games and services.”
Xurpas specializes in creation and development of digital products and services for mobile end-users and creation and development and management of proprietary platforms for mobile operators. It has two business segments: gaming and enterprise, which is focused on telecommunications solutions.
It also specializes in “casual game communities” wherein prepaid subscribers gain unlimited access to 15 games that can be played with multiple online subscribers for a minimum fee of P5.
The notable games developed by Xurpas include Globe Games with Friends, Let’s Play Smart, and Grab-A-Gold.
Xurpas posted a 60 percent increase in net income last year from P119.49 to P190.72 million. Its revenues rose by 56 percent to P392.22 million from P252.06 million in 2013.