Xurpas Inc. has acquired a 23.53 percent equity stake in Micro Benefits Limited for $10 million, involving 718,833 preferred shares. Seed Equity investors participated in Micro Benefits’ funding round last year.

Based on the principle of fair market value of the shares, the transaction was priced at $13.921124 per share.

Micro Benefits is a Hong Kong-based company providing innovative mobile solutions in human resources to Fortune 500 companies in China. The company does business through its wholly-owned subsidiary, Micro Benefits Financial Consulting (Su Zhou) Co. Ltd.

Company Link, a proprietary platform introduced by Micro Benefits, is used by nearly 700,000 employees of its clients.

What Company Link does is improve worker engagement. “It has been proven to reduce turnover by as much as 15 percent,” Xurpas noted in a disclosure to the Philippine Stock Exchange on Wednesday.

The current roster of clients of Micro Benefits includes FORTUNE 500 firms engaged in technology and consumer electronics, athletic footwear and sports equipment and other large companies with manufacturing facilities in China.

Xurpas said its board of directors approved the acquisition deal on Tuesday.

The transaction calls for Storm Flex Systems, Inc., a subsidiary of Xurpas, to enter into a cooperation agreement with Micro Benefits. Storm will join Micro Benefits by using Company Link in China.

“This cooperation shall give employees the opportunity to convert their standard employee benefits to various products,” Xurpas said.

The cash purchase will be paid in three installments.

Once the subscription agreement is signed, Xurpas will remit $1 million to Micro Benefits.

“Xurpas shall remit $4,000,000 once Micro Benefits has fulfilled all of its deliverables. The final sum of $5,000,002.92 shall be paid by Xurpas at least 60 days from signing of the subscription agreement,” the disclosure read.

“The investment in Micro Benefits is a strategic move that establishes China as a new market for Xurpas’s growing HR Benefits business, while simultaneously allowing us to offer new solutions to companies in Southeast Asia,” Xurpas said. Read the full article on this news here.