Globe acquires 77% of ECPay for P1.5 billion

MANILA, Philippines —  Telecommunications giant Globe Telecom Inc. is taking majority ownership of a leading electronic payment service provider in the country that has over 9,000 partner outlets nationwide.

Globe announced the approval of its board of the company’s acquisition of 77 percent equity interest, or 49.280 million shares, in Electronic Commerce Payments Inc. (ECPay) for P1.54 billion.

ECPay is a company engaged in the provision of information technology and electronic commerce related solutions, and operates a multi-tiered platform that offers secure electronic solutions for various transactions such as load purchases.

“Integrating ECPay into Globe’s network of retailers will add value to our distribution channels, enabling them to offer a suite of products and services via a single platform,” Globe president and CEO Ernest Cu said.

Globe said ECPay’s platform would future-proof its distribution network, bringing the company a step closer to its vision of a digitally-enabled Philippines.

It also said the platform would enable small business owners to offer more products and services which in turn would stimulate the e-commerce industry and the digital economy.

For over 16 years, ECPay has built its network now consisting of over 9,000 partner outlets by enabling retail outlets and collection partners to offer accurate, secure and timely payment services to their customers while providing merchant and biller clients with real-time electronic reconciliation, web-based reporting, and system management.

ECPay’s multi-payment platform payment infrastructure operates as a secure electronic depot for electronic loading, bill payments, airline ticket payments, cash-in service and online shopping transaction payments.

ECPay will be the latest addition to Globe’s expanding portfolio which also includes major interests in financial technology, digital marketing solutions, venture capital funding for startups, entertainment, and virtual healthcare.

As a full-service telecommunications company, Globe serves the telecommunication and technology needs of consumers and businesses across an entire suite of products and services including mobile, fixed, broadband, data connectivity, internet and managed services.

Globe has earmarked P63 billion or about $1.2 billion for capital expenditures this year, 45.5 percent higher than the P43.3 billion or about $821 million capex spent last year.

The company recorded a core net income of P12 billion in the first half, up 18 percent from the same period last year, while posting a consolidated service revenues of P72.9 billion, 13 percent higher year-on-year.