MANILA, Philippines - Listed technology firm Xurpas Inc. has made its entry into the Indonesian market with the acquisition of a 49 percent stake in IT firm PT Sembilan Digital Investama (SDI) for $250,000.
Xurpas told the local bourse that it had signed a binding term sheet which gives it nearly half of the ownership as well as full management control of SDI.
The firm said the acquisition would also give Xurpas access to and control of PT Ninelives Interactive, a mobile content and distribution company, which SDI owns.
Ninelives is expected to give Xurpas access to a huge market for the company’s games and other services.
“Indonesia is one of the most exciting mobile markets in the world with close to 300 million subscribers, making it the fourth largest mobile market in the world. Just like the Philippines, majority of users are still on prepaid but they are rapidly moving away from fixed connections in favor of smartphones and mobile data. The striking similarity between the Indonesian market and ours makes it an ideal location to establish another stronghold,” said Nix Nolledo, president and chief executive officer of Xurpas Inc.
Ninelives is the third company Xurpas has acquired or invested in since its initial public offering in December last year.
The first was through a $740,800-acquisition of 21.78-percent stake in Singapore IT company Altitude Games Pte Ltd.
Following Altitude was Storm Flex Systems Inc., of which Xurpas now owns a 51-percent controlling stake upon closing the deal at a purchase price of $4.3 million.