Newly listed mobile content provider Xurpas Inc. has bagged a deal to acquire a 51-percent stake in local technology firm Storm Flex Systems for around $4.3 million.
The deal will enable Xurpas to expand its distribution capability to physical goods and services, from that of purely digital.
Storm has developed a proprietary platform that enhances the employee benefits system of some of the country’s leading conglomerates, business process outsourcing and fast-moving consumer goods companies in Metro Manila and Cebu, Xurpas said in a disclosure to the Philippine Stock Exchange Friday.
The platform allows employees of any company that has signed up with Storm to exchange their current employee benefits into products and services—from gadgets and dining, private carpool system, doctor consultations on demand, all the way to donations for charitable causes.
The platform seeks to enhance employees’ satisfaction, enabling them to become more productive, by giving them the power of choice. Also, their employers may substantially improve their ability to attract, retain and excite people.
Xurpas president and chief executive officer Nico Jose Nolledo noted in a statement how Storm, since its inception, had demonstrated “truly exponential growth,” with revenue increasing fivefold from 2013 to 2014.
Storm intends to use the proceeds from the deal to accelerate growth locally, and branch out to other markets in Southeast Asia. It currently serves 15,000 client employees—a number that is expected to double this year after the deal with Xurpas.
This is the second and the largest acquisition so far by Xurpas after its successful initial public offering in December 2014.
Trading on Xurpas was halted for an hour Friday morning following the disclosure on the deal. Doris C. Dumlao