EasyCall borrowing funds for tech firm acquisition, capex
The Delgado family’s EasyCall Communications Philippines Inc. is raising up to P200 million to acquire affiliate Transnational E-Business Solutions Inc. and pay for other capital expenditures (Capex).
The company said in a stock exchange filing on Monday the amount would come from bank loans and shareholder advances, adding that the acquisition of 100 percent of Transnational E-Business for nearly P163 million should be completed “within 30 days.”
This comes after the parties executed the transaction documents for Transnational E-Business, which provides software development, software as a service and information technology outsourcing services.
Transnational E-Business is owned by Delgado-controlled companies, including TDG Ventures Inc., which owns 88 percent of EasyCall.
“The acquisition of [Transnational E-Business] will add to the overall business scale and capabilities of [EasyCall] group. [Transnational] is expected to improve the overall financial performance of [EasyCall] based on [its] revenue and net income contribution,” the company said in the filing.
“The acquisition will also create synergy and potential growth opportunities for [EasyCall] given the complementary lines of business and operational capabilities of both companies,” it added.
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.
Total revenue hit P219.01 million as of June last year while profits amounted to P14.84 million.
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. INQ
