Xurpas, which acquired eight companies since it listed in December 2014, said it will continue with its acquisition spree at the same pace next year as it strengthens its foothold in the Asia Pacific region. “The expansion will be just as aggressive. We have much resources today because we raised money, and we never had that much cash and that many resources to deploy,” Xurpas Chairman and Chief Executive Officer Nico Jose S. Nolledo told BusinessWorld on Tuesday, on the sidelines of the APEC SME Summit in Green Sun, Makati City.
“Since the IPO (initial public offering), we opened a lot more doors to other technology hubs and corridors around the world,” he added, referring to the firm’s P1.24-billion maiden share sale. Within the same month of its IPO, Xurpas took a 21.7% interest in Altitude Games Pte. Ltd., a Singaporean mobile game developer and publisher. Last February, it purchased a 51% interest in local human resource consultancy firm Storm Flex Systems, Inc. for P190.89 million. This was shortly followed by the acquisition of a minority interest in Quick.ly, Inc., an American start-up technology firm, under a $1-million deal — its first investment outside Asia.
In March, Xurpas entered the Indonesian market by taking in a 49% stake in PT Sembilan Digital Investama, an IT firm that owns mobile content company Ninelives, in a deal valued at $245,000. In the same month, it said it invested $1.4 million for 31.42% of Singapore-based multiplayer games platform MatchMe Pte. Ltd.
Last June, it bought 70% of software design company Seer Technologies, Inc. Two months later, it acquired a 51% stake in mobile phone content developer Yondu, Inc. for P900 million. This month, Xurpas moved to purchase $500,000 in convertible promissory notes to be issued by Singapore-based technology solutions provider Einsights Pte. Ltd. Mr. Nolledo said the firm is “exploring” several investment opportunities, but noted that technology “has to underpin” all future acquisitions. Xurpas has spent “majority” of its IPO proceeds and while there is no pressing need to raise funds immediately, he said that “if there’s an interesting opportunity that requires more capital than we have at present, we’ll be open to that.”
“We’ve never taken on a loan before. If ever we raise additional capital, it will probably be more on equity than debt because you hit two birds with one stone,” Mr. Nolledo said. “You are able to satisfy what investors are looking for, which is increased liquidity, at the same time you generate resources that will allow you to expand.” But despite market clamor to increase its 19.80% public float, the company is not planning any share sale soon. “If ever we increase the float, we will do it because there’s an appropriate investment opportunity that’s sizeable. Something that can really help us expand our business more aggressively,” Mr. Nolledo explained.
Asked about what 2016 looks like for Xurpas, he replied: “More markets and more products. We’re really looking at harvesting our existing investments.” Shares in Xurpas added 40 centavos or 2.50% to end Tuesday trading at P16.40 apiece.
First seen at: BusinessWorld
