xurpas
In the first half, the tech firm swung to a net loss of P43.7 million, narrower than P118.3 million net loss posted in the same period last year.
File photo/BusinessWorld
Xurpas greenlights acquisition of US tech venture capital firm
(Philstar.com) - September 21, 2020 - 6:27pm

MANILA, Philippines — Listed technology firm Xurpas Inc. announced Monday that its board approved to acquire Los Angeles-based venture capital management company Wavemaker Partners US.

Xurpas broke the news in a disclosure to the stock exchange. Under the planned deal, which was first announced in November last year, Xurpas will pay P170 million in cash to take control of Wavemaker.

Should shareholders approve the transaction, Xurpas expects the acquisition to be completed in the fourth quarter of this year. 

"This acquisition significantly expands Xurpas’ technology base and gives Filipino shareholders and investors access to an entire portfolio of promising venture-backed early-stage companies in the US," Nix Nolledo, company chairman, said.

"Through Wavemaker US, Xurpas shareholders can now participate in the significant potential upside from investments in the early-stage technology space," Nolledo added.

To compliment the acquisition deal, Xurpas said its board also approved the sale of 1.7 billion unissued shares to general partners of Wavemaker, or equivalent to approximately 48% stake.

On Monday, the local bourse suspended the trading of Xurpas shares pending a "full and comprehensive" report on the twin transactions' impact on the company's balance sheet. In the first half, the tech firm swung to a net loss of P43.7 million, narrower than P118.3 million net loss posted in the same period last year.

As it is, Xurpas said its acquisition of Wavemaker and the American company's subscription of outstanding company shares "will not impact the cash position of Xurpas post-transaction."

According to Xurpas, Wavemaker has invested in over 230 technology companies since its establishment in 2003 and has profited by helping firms raise funds through initial public offerings and acquire new businesses. 

The American venture management company also has indirect investments in technology firms such as Zoom, Twilio, Cruise Automation, Udemy, TalkDesk and Intercom. — Ian Nicolas Cigaral

XURPAS INC.
Philstar
  • Latest
  • Trending
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

FORGOT PASSWORD?
SIGN IN
or sign in with