MANILA, Philippines - Listed consumer technology company Xurpas Inc. on Thursday said it has acquired a controlling stake in a fast-growing tech firm in the Philippines.
In a statement, Xurpas said it signed a deal with Storm Flex Systems, Inc. to buy a 51 percent controlling stake in the company for $4.3 million.
Storm has developed a flex benefits system for companies. Under the system, employees of a company that has signed with Storm can exchange their current employee benefits for a range or products and services such as gadgets, dining, doctor consultations and even donations.
This system is currently used by leading local conglomerates, BPOs, and FMCG companies in Manila and Metro Cebu.
Storm currently serves 15,000 clients. The company expects to increase this figure to 30,000 in 2015 post acquisition by Xurpas.
Xurpas said Storm's revenues has increased five-fold from 2013 to 2014, although it did not provide any figures.
"The acquisition of Storm signals our expansion into an entirely new distribution network, and into the selling of physical goods and services. And because Storm’s clients are able to provide their employees with an effectively wider range of benefits, it is yet another example of how technology can provide companies an ‘unfair advantage’ in the most unlikely areas such as employee attraction and retention," Nix Nolledo, President and CEO of Xurpas, said.
"We strongly believe that (Xurpas) is the ideal partner to help us realize our vision of building better employee lives through the provision of better benefits. We feel this partnership will allow us to achieve the next stages of growth and development in the region. There is a tremendous opportunity ahead of us," Storm CEO Peter Cauton said.
Storm said it will use the funds from the transaction to accelerate growth locally, and branch out to other markets in Southeast Asia.
Storm is Xurpas' second, and so far its largest acquisition since the company listed on the Philippine Stock Exchange last year.