Cirtek eyes P500-M revenues from MultiPay

MANILA -- Electronics manufacturer Cirtek Holdings Philippines Corp. (CHPC) expects its recently acquired e-commerce firm, MultiPay, to generate PHP500 million revenues this year.  

CHPC invested an initial PhP100 million to acquire a substantial stake in MultiPay, and would support the firm in its efforts to enhance technological capacity and services.

Cirtek Vice Chairman and President Roberto Juanchito Dispo said the company's purchase of a 49-percent stake in MultiPay would give Cirtek access to superior e-commerce solutions, which fortify its posture in the market as a fully-integrated solutions provider.

“The consolidation of Cirtek's core strength in hardware and connectivity with MultiPay's expertise in software and technology systems makes us confident that we will be able to provide effective and innovative e-commerce solutions to the emerging markets in the region,” Dispo said.

This first major software investment of Cirtek will immediately earnings accretive and strengthen the listed company's software development capabilities and open opportunities in the fast-growing electronic commerce space.

MultiPay President and Chief Executive David Almirol said,  “the entry of Cirtek will provide MultiPay with the financial wherewithal to take advantage of the still many low-hanging fruits in the Philippine electronic commerce space as well as replicate our success in the local market in other countries in Southeast Asia.”

MultiPay currently provides back-end and integration support for more than 30,000 payment channels worldwide. It is the exclusive technology partner of the three leading payment channels in the Philippines.

To grow the business, Cirtek Group Chief Financial Officer and Treasurer Anthony Buyawe said the company was on the lookout for some acquisitions.

Just in August, Cirtek completed its acquisition of smart antenna-maker Quintel Solutions, a transaction that bolstered the company's manufacturing capability and opened new markets overseas.

Quintel is expected to contribute around half of Cirtek's increasing earnings.

Buyawe is looking at USD 160 million to USD 170 million (over PHP8 billion) in consolidated sales for 2018 from last year’s estimated USD 100 million. (PNA)