Xurpas acquires controlling stake in fast-growing tech firm

MANILA, Philippines - Filipino-owned consumer technology firm Xurpas Inc. has acquired a controlling stake in one of the fastest-growing technology companies in the country for $4.3 million.

Xurpas said it has signed a deal with Storm Flex Systems Inc. to buy the latter’s 51 percent controlling stake.

 “At Xurpas, we have always said our business is simple: we tap networks which allow us to efficiently reach potential users, and we create or acquire the best products to sell to these users,” said Nix Nolledo, president and chief executive officer of Xurpas.

Storm is regarded as the developer of a proprietary platform which allows employees of any company that has signed with Storm to exchange their current employee benefits and transform them into a wide range of products and services.

Some of the country’s leading local conglomerates and companies in Manila and in Metro Cebu are currently using Storm’s flex benefits system.

 “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,” Nolledo said.

For its part, Storm intends to use proceeds from the transaction to further accelerate its growth locally and branch out to other markets in Southeast Asia.

 “We are joining forces with Xurpas because we strongly believe that it 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,” said Peter Cauton, CEO of Storm.

Xurpas expects to double the total number of client employees served by Storm to 30,000 this year from its present 15,000.

 “The business has been running successfully for the past two years, and can boast of a truly astounding growth trajectory. It has a sound revenue generation model which is both unique and exportable to other markets. So we consider it as one of the great inroads to regional expansion,” Nolledo said.

Storm is the second and the largest acquisition made by Xurpas following its successful initial public offering in December last year.