Xurpas buys 51% of Globe Telecom unit Yondu

MOBILE content provider Xurpas Inc. is investing P900 million to acquire a 51 percent stake in Yondu Inc., a subsidiary of Globe Telecom which develops mobile content and provides mobile and information technology services.

The investment will solidify the Globe and Xurpas partnership in the Internet and digital space and transform Yondu into a regional arm for digital content distribution and other technology-driven services, Xurpas and Globe said in a joint statement announcing the deal on Wednesday.

“Globe Telecom has been our strongest partner in the Philippines and the investment into Yondu stengthens our joint capabilities to bring world class digital products to the global audience,” Xurpas CEO Nix Nolledo said.

Xurpas has a strong history of deploying successful consumer technology businesses. Following the company’s successful initial public offering last year, Xurpas has expanded regionally, acquiring and investing in various content and distribution companies to expand its digital footprint across Southeast Asia.

This latest acquisition is seen to boost Xurpas’ continued expansion beyond the Philippines.

For Globe, this strategic alliance with Xurpas in Yondu is in line with its array of partnerships with leading digital players to promulgate the Filipino digital lifestyle.

“Globe is very excited to be partnering with Xurpas in taking Yondu to the next level. Over the past few years, we have built the company into a great platform for media and content innovation and it is time to bring our aspirations regional. In keeping with our partnership model, we have chosen to work with Xurpas to make this happen. Their track record in building businesses centered on consumer content will round out the technical and innovative capabilities of Yondu,” Globe president and CEO Ernest Cu said.

Xurpas is now valued by the market at P19 billion, more than double its market capitalization of P6.8 billion when it listed on the local bourse eight months ago. The company that was put up with only P62,500 in seed capital 14 years ago is now using proceeds from its initial public offering to expand across Southeast Asia.

A technology company specializing in the creation and development of digital products and services for mobile end-users, Xurpas’ portfolio includes online casual games, messaging and other social discovery applications as well as call/SMS/ data bundles, peer to peer mobile airtime credit transfers and mobile commerce.