Xurpas buys into HK-based HR solutions firm
Mobile consumer technology provider Xurpas Inc. has gained access to populous China by buying into Micro Benefits Ltd., a Hong Kong-based company providing innovative human resources (HR) solutions to topnotch companies in the mainland.
In a disclosure to the Philippine Stock Exchange yesterday, Xurpas said it had acquired a 23.53-percent stake in Micro Benefits for $10 million. This is so far the biggest overseas investment made by Xurpas.
Micro Benefits, through wholly owned subsidiary Micro Benefits Financial Consulting (Su Zhou) Co. Ltd (MB China), began its operations in 2013, focusing on using mobile technology to address the growing problem of worker turnover at large manufacturing facilities in China. Today, the company’s proprietary “Company Link” platform is used by nearly 700,000 of its clients’ employees and by improving worker engagement, has been proven to reduce turnover by as much as 15 percent.
MB China’s current roster of clients includes Fortune 500 firms engaged in technology and consumer electronics, athletic footwear and sports equipment and other large companies with manufacturing facilities in China.
This investment is seen unlocking synergies with a local Xurpas subsidiary engaged in a similar business. Xurpas controls majority of Storm Flex Systems Inc., whose platform allows employees to exchange their standard employee benefits into a wide range of products and services, ranging from gadgets, travel packages and insurance.
“Combining the platforms of Micro Benefits and Storm Flex Systems Inc. creates a more compelling business solution fully intended to optimize their HR technology platforms which they could both offer to their clients,” said Nix Nolledo, CEO of Xurpas.
“Expansion is one of our continuing priorities, and this is a strategic move that establishes China as a new and hugely lucrative frontier for our growing enterprise business, while simultaneously allowing us to offer new solutions to companies here in Asia.”
Storm Flex Systems Inc.’s current roster of clients include the Philippines’ leading local conglomerates, financial services firms, business process outsourcing and fast-moving consumer good companies.
Xurpas has so far invested $14 million in six offshore technology companies, Nolledo said. The investment in Micro Benefits was the fifth since Xurpas debuted on the local stock exchange on Dec. 2, 2014, then raising P1.36 billion in fresh capital.
The string of overseas buy-in deals made by Xurpas is seen part of its diversification program.
“The offshore investments represent product and territory expansion opportunities. Most of our revenues at present come from the Philippines still but moving forward, we expect to see more and more of our growth coming from overseas,” Nolledo said. Doris Dumlao-Abadilla
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