Xurpas to buy US firm by end-2020

xurpas to buy us firm by end 2020 - Xurpas to buy US firm by end-2020

TECHNOLOGY FIRM Xupas, Inc. will be completing its P170.7-million acquisition of venture capital firm Wavemaker Partners US before the end of the year.

In disclosures to the exchange on Monday, Xurpas said its board of directors had approved the transaction with Wavemaker US on Sept. 20. Stockholders will need to approve the decision in a meeting scheduled in November.

“The purchase price will be paid upon completion of the closing conditions, which shall be on a date no later than December 31, 2020,” it said.

Xurpas first announced in November 2019 its plan to buy Wavemaker US, a Los Angeles-based technology fund that has more than $210 million assets under management.

Under the agreement, Xurpas will issue 1.7 billion new common shares that Wavemaker will subscribe to at 10 centavos each. This is equivalent to a 48% stake in Xurpas.

The company said it wants Wavemaker US to be a strategic partner that will help it in long-term plans.

“Equity ownership in the holding company that will consolidate all of the General Partners rights in Wavemaker Partners US will give Xurpas access to high-value, emerging, innovative, and disruptive technologies and platforms for its enterprise business and shareholders,” the company said.

The deal will not cover Wavemaker’s unit in Southeast Asia, which is independent and wholly owned by its management.

In a statement Monday, Xurpas said Wavemaker US has invested in more than 230 tech companies since its formation in 2003. Most of these focus on enterprise software, data and intelligence platforms and digital media.

“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,” Xurpas Chairman Nico Jose S. Nolledo said in the statement.

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

Xurpas booked an attributable net loss of P43.75 million in the six months to June, slimmer from the previous year’s P118.28 million. — Denise A. Valdez

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