GLOBE TELECOM, INC. announced Monday that it will buy a 67% stake in Third Pillar Business Applications, Inc., a business application consulting and systems integration firm.
In a disclosure to the stock exchange, Globe said its wholly-owned subsidiary GTI Business Holdings, Inc. will invest P173 million in Third Pillar.
The deal also mandates Third Pillar to acquire the shares of Third Pillar Global Delivery Center.
“This transaction forms part of Globe’s strategy to be the trusted advisor of enterprise customers in the Information and Communications Technology space through introduction and implementation of efficient, reliable and leading-edge technologies,” Globe said.
Globe President and Chief Executive Officer Ernest L. Cu said the acquisition of Third Pillar expands the telco’s suite of cloud business offerings.
Third Pillar President and Chief Executive Officer Jennifer S. Ligones said: “Globe’s investment in Third Pillar empowers both entities to face the digital future from a position of strength. Globe will be able to enhance its ability to provide enterprise business solutions to its customers, which is a critical complement to its core business.”
“In turn, Third Pillar will be able to achieve greater efficiencies and sustainable local and global growth as it gains access to Globe’s platform, customer base and expertise,” she added.
Globe reported recently that its second-quarter net income declined 7.8% to P4.90 billion from P5.32 billion in the same period last year due to the impact of coronavirus lockdowns on its operations.
Compared with its first-quarter net income attributable to the parent of P6.6 billion, Globe’s latest net income is lower by 26%.
Shares in Globe on Monday closed 0.84% lower at P2,118 apiece. — Arjay L. Balinbin
