Paxys chairman Tarcisio Medalla said the company is looking at Australia and Europe as new sites for expansion to further improve its cashflow.
The company also plans to aquire a majority stake in Global Idealogy Corp. (GIC), a leading provider of corporate mobile software applications in the domestic pharmaceutical industry.
It signed an agreement to acquire 4,404,498 common shares of GIC at P2.25 per share and 2.15 million warrants at P0.25 each. The total transaction price is P10.45 million.
Upon full exercise of the warrants, Paxys will own up to 15.81 percent of GIC’s outstanding capital stock.
After that, Paxys will infuse P7.5 million into GIC through a subscription of new common shares which will bring its ownership to 23.85 percent.
The cash infusion, equivalent to 3.33 million GIC common shares, is intended to partially finance GIC’s regional expansion and product diversification plans.
Paxys said it intends to increase its stake in GIC to 51 percent within the first half of the year through a follow-up transaction involving the purchase of additional common shares and warrants.
According to Paxys, the acquisition of GIC is intended to support its strategic intent to broaden and deepen its product and service offerings in the business processing outsourcing sector.
Together with its recent investment in ScopeWorks Asia, a data transcription company, the acquisition of GIC is envisioned to complement Paxys’ staple call center business under its subsidiary, Advanced Contact Solutions Inc.
In the nine months ending September 2005, Paxys posted a net income of P206.79 million or 150 percent higher than the previous level, mainly driven by the robust demand for business process outsourcing services from the United States.