EasyCall to buy affiliate for P162.9M
MANILA, Philippines—The Delgado family’s EasyCall Communications Philippines Inc. is set to complete the acquisition of affiliate Transnational E-Business Solutions Inc. by January next year, concluding a deal nearly 17 years in the making.
EasyCall said in a stock exchange filing it will acquire 100 percent of Transnational E-Business, which provides software development, software as a service, and information technology (IT) outsourcing services, through a roughly P163 million deal to be financed by shareholder advances and loans.
Transnational E-Business is owned by Delgado-controlled companies, including TDG Ventures Inc., which owns 88 percent of EasyCall.
Based on its latest financial statement in 2020, Transnational E-Business booked P455.73 million in revenues, up 11 percent, while net income rose about 60 percent to P59.54 million.
In the same period, EasyCall, which provides internet, data centers and IT services, recorded service revenues of P81.27 million, up 12.7 percent. The company reported a profit of P5.42 million, reversing an P11.62 million loss the previous year.
EasyCall president and CEO Zaki Delgado said in a separate statement that combining the two companies made sense and would “unlock their potential through digital transformation.”
“We are very optimistic that through this new development with [Transnational E-Business], we can build on our culture of innovation and provide the best digital solutions that address the needs of our customers,” Delgado said.
EasyCall considered a merger or acquisition of Transnational E-Business as early as 2004, its annual report showed.
In 2005, EasyCall entered into an agreement with Transnational E-Business where the latter shall be the long-term outsource provider for the company’s internet data center management requirements.
“For 20 years, Transnational E-Business has been assisting PH-based and international companies to innovate digitally and has over 100 technology professionals specializing in agile delivery and professional services, with vast experience in developing web and mobile applications,” EasyCall said in its statement.
It added the company’s solutions are built to scale and suited to the business needs of smaller businesses to larger enterprises.
