MANILA, Philippines — EasyCall Communications Philippines Inc. is acquiring an information technology services firm for P163 million to boost its position as a technology company.
EasyCall said it would acquire 100 percent of the total issued and outstanding shares of Transnational E-Business Solutions Inc. (TESI), a company engaged in the business of information technology services, including software development, software as a service, and information technology outsourcing.
TESI’s one million shares will be purchased by EasyCall at P162.93 apiece.
EasyCall said the sale transaction is scheduled to be concluded early next year once it completes sourcing the funds for the acquisition.
Funding for the acquisition will be sourced from bank loans and shareholder advances, the publicly listed company said.
EasyCall’s board of directors has approved a move to obtain bank loans and/or shareholder advances of up to P200 million in order to fund the acquisition, as well as capex and general corporate purposes.
EasyCall said the acquisition of TESI would further enhance its products and service offerings as a technology firm.
“The acquisition of TESI will enhance ECP’s thrust as a technology company as it complements ECP’s current services on connectivity, data and technology services. The acquisition of TESI will add to the overall business scale and capabilities of ECP group,” it said.
TESI is a company that has enabled businesses to fast track their digital adoption through systems development using low-code applications, software as a service, and information technology outsourcing, among others.
TESI is 50 percent owned by Transnational Diversified Corp. (TDC) and 50 percent owned by TDG Ventures Inc. (TVI), while ECP is 88.03 percent owned by TVI.
EasyCall said the amount of consideration of the transaction is based on the book value of TESI based on the pooling of interest approach since TESI and EasyCall are under common control of TDC directly and through TVI.