IP E-Games acquires Internet cafe chain

MANILA, Philippines - IP E-Games, the publicly-listed online gaming subsidiary of technology firm IPVG, is further solidifying its presence in the digital consumer platform with the acquisition of another Internet café, I.T. Park Log Inc., which owns a chain of 23 branches.

The move follows the company’s purchase of the Netopia chain of Internet cafes and is seen to boost the group’s network to around 170.

In a disclosure to the Philippine Stock Exchange, E-Games said it signed an agreement to acquire at least 75 percent of I.T. Log Park which has 12 company-owned and 20 franchise branches.

The deal, subject to a due diligence study, is expected to be consummated in the next 60 days.

“I.T.Log services a specific segment of the market which is not served by our other Internet cafe chains. As such, we see this acquisition helping us complete our formula of becoming the end-to-end provider across all segments of the Internet cafe sector. We look forward to successful completion of the transaction,” said Enrique Gonzalez, chief executive officer of E-Games.

Michael Yee, president of I.T. Log, for his part, said: “I.T. Log believes that its partnership with E-Games will result in giving quality Internet cafes to more people at affordable prices. Pending completion of the agreement, I.T. Log Park and E-Games will continue to strive for excellence, knowing that Internet technology not only educates, informs and entertains, but likewise provides opportunities for small, start-up enterprenerus through e-commerce. Internet cafes made all these accessible to the ordinary Pinoy and we would like to make it available to more.”

Most of I.T. Log’s cafes are open 24 hours to better accommodate the demands of over 10,000 of its regular daily customers.

Incorporated in 2005, IP E-Games is a leading online game publisher in the Philippines, offering the widest selection of games from casual gamers to core enthusiasts. Its flagship game, RAN Online, a campus-based massive multiplayer online role-playing game (MMORPG), is the leading online game today. It also publishes CABAL Online which garnered a phenomenal 60,000 CCU (concurrent users) two weeks after it was launched.

MMORPGs allow a large number of players to interact with one another over the Internet in a virtual world.

The company pioneered the free-to-play business model, wherein gamers are not required to pay a subscription fee to play online games.

 Among the gaming titles launched by the company this year were Superstar, a singing game similar to Singstar for the Sony PlayStation 3 and Dragonica, the first eight-way 3D side scrolling online adventure game.

IP E-Games is the first Philippine online game company to release Triple A titles such as Granado Espada which earned the Presidential Award for the best Korean game in 2006. Aside from Granado Espada, the company has also launched Runes of Magic, the award-winning high-fantasy MMORPG.

The company has 28 main distributors with a network spanning approximately 20,000 outlets such as Internet cafes, independent kiosks, mini-carts and computer shops.