Smart acquires Chikka
Posted on November 14th, 2009
Chikka Holdings Ltd., the pioneer of free web-based PC-to-phone instant messaging system in the country will be acquired by the leading wireless provider Smart Communications, in a transaction that is expected to be completed next month.
Smart, the mobile arm of the Philippine Long Distance Telephone Co. (PLDT) confirmed the acquisition last Friday and said that it has entered into a sales and purchase agreement to acquire all of Chikka’s shares. “The transaction is expected to be closed sometime in late December, subject to the fulfillment of certain conditions,” Smart said in a statement.
Chikka.com’s founder Dennis Mendiola divulged the buyout over social networking site Twitter. Both parties, however, refused to reveal the value of the deal.
They both said that Smart and Chikka will mutually benefit from the acquisition, because Chikka was acquired primarily for its ability to develop products. While Chikka will benefit from partnering with a telecommunications company that has regional operations as well as tie-ups with more than 200 telecom operators worldwide.
“It is wise to partner with a telecom company like Smart. The environment has changed and teaming up with a strong partner will open up doors for us,” Chikka said.
The services of Chikka’s instant messaging system will still be available to other telecom operators in the country. “It will be business as usual but now, as a subsidiary, we will have to focus on developing products from Smart,” the company said.
Chikka.com’s instant messenger service has 38 million registered users, including mobile subscribers from network operators worldwide. Chikka provides various wireless applications to more than 30 mobile operators in 17 countries, including the United States, United Kingdom, Japan, Indonesia, Malaysia, Singapore, Hong Kong and India.
Aside from the applications for mobile devices, Chikka also develops application for commerce and corporate needs.
