Cirtek buys 49% of MultiPay

Laguna-based electronics manufacturer Cirtek Holdings Philippines Corp. has debuted into the e-commerce space with the acquisition of a 49 percent stake in e-payment provider MultiPay.

In a media briefing on Wednesday, Cirtek president Roberto Juanchito Dispo said the initial investment of P100 million in Multipay – his company’s first major software investment – would not only gradually increase Cirtek’s revenue but also strengthen its software development capabilities in the fast-growing e-commerce space.

“The consolidation of Cirtek’s core strength in hardware and connectivity with MultiPay’s expertise in software and technology systems makes us confident that we will be able to provide effective and innovative e-commerce solutions to the emerging markets in the region,” he added.

Cirtek has committed to invest additional billions of pesos in MultiPay in the next 12 to 18 months.

Cirtek chief financial officer and treasurer Anthony Buyawe said this new acquisition would likely contribute less than 10 percent of the company’s total revenue for this year, equivalent to about P130 million to P150 million. Cirtek is optimistic that this annual contribution will increase over the years.

MultiPay is a leading provider of e-commerce systems in the country, with e-payment channels like Bayad Center, EasyPay, and Dragonpay as clients.

Citing web-based statistics company Statista, Dispo said that the e-commerce transaction value in the country was projected to grow to $10.6 billion in 2020 as more Filipinos access the internet. This translates to a growth rate of 160 percent over the period, which is faster than the projected global transaction value growth rate of 114 percent.

MultiPay president and chief executive officer Dave Almirol revealed the company’s desire to streamline its services and offer more e-payment channels as its capital increases.

“There are many fragmented channels here in the country, and one of MultiPay’s strengths is its ability to connect everyone. We want to make a strong and dominant e-payment system to replace these fragmented systems,” he said.

Cirtek is looking to expand its footprint through additional acquisitions in the next few years, Buyawe added.

Before it acquired a substantial stake in MultiPay, Cirtek bought Quintel in August last year, a Silicon Valley-based antenna solutions company.

“We intend to grow our company organically by improving the existing companies that we have, and by providing capital to companies with great potential. We want to go into businesses that are sustainable and can grow out intellectual property,” he said.