Philippines-based Xurpas acquires Wavemaker Partners

The VC's Singapore-based Southeast Asia practice, referred to as Wavemaker SEA, is not included in the transaction and will remain an independent entity wholly owned by its management.

It will see Xurpas pay PHP170 million ($3.4 million) in cash for 100% control of the Los Angeles-based GP, which will in turn take a 48% interest in the Manila-listed company through an acquisition of unissued shares. Xurpas stock was trading at PHP1.05 as of mid-morning November 7, giving the company a market capitalization of around PHP1.8 billion.

Wavemaker will appoint two members to the Xurpas board, and its general partners will continue to control its investment operations. The deal is expected to be completed by the first quarter of 2020 pending shareholder approval.

Wavemaker's US business has invested more than 230 technology companies since inception in 2003 and it currently has about $210 million in assets under management. The firm is a regional partner for southern California in the Draper Venture Network, a global alliance formed by Tim Draper. Nix Nolledo, chairman of Xurpas, said Wavemaker's US team has consistently outperformed the public markets during the past 16 years.

Standouts from the US portfolio include Viagogo, a category leader in online ticketing, and Mindbody, a software-as-a-service provider for the wellness industry that went public and was eventually acquired by Vista Equity for $1.9 billion. Wavemaker was also an early investor in US lifestyle digital media company StyleHaul in 2012 when the VC firm was known as Siemer Ventures. StyleHaul was acquired by RTL last year for more than $200 million.

"Venture capital has historically been reserved for select high net worth individuals and institutions that have the ability to commit their capital for long periods of time," Stephen Sieh, a managing partner of Primeiro Partners, the financial advisor of Xurpas, said in a statement. "This transaction allows Xurpas shareholders indirect access to promising technology companies in the US and globally without the need to lock up their investible capital."

Xurpas was established in 2001 as a content provider for telecom operators and has since diversified into a range of mobile and enterprise software domains. The firm went public in 2014 and has since acquired a number of Southeast Asian consumer tech start-ups with a strong emphasis on video games. In 2016, it provided an exit for Wavemaker SEA by acquiring Singapore-based mobile marketing company Art of Click in a $45 million deal.

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• Topics
• Southeast Asia
• North America
• GPs
• Technology
• Venture
• Consumer
• Philippines
• USA
• Wavemaker Partners