Quepasa Corporation Tuesday announced it is to acquire Brazil’s XtFt Games S/S Ltda. Quepasa Corporation is the creator and operator of Quepasa.com, the popular online social network for the Latino community.

The firm Tuesday said it has executed a definitive agreement to acquire XtFt Games S/S Ltda (XtFt), the owner of substantially all the assets of TechFront Desenvolvimento de Software S/S Ltda (TechFront), a social game development studio based in Curitiba, Brazil.

Quepasa will acquire XtFt for net consideration of approximately $4 million, comprised of $3.7 million in shares of Quepasa common stock (as determined by Quepasa’s average closing price over a 10-day period) and a $300,000 brokerage fee. XtFt’s key partners have also been offered option-based retention packages. The transaction will close upon the delivery of all outstanding items outlined in the agreement.

TechFront was founded 5 years ago as a developer of multiplatform console, Web and mobile games. TechFront began developing social games for the Orkut platform last year, in partnership with various international publishers, including U.S. based eGames.

Quepasa chief executive officer, John C. Abbott, said the addition of TechFront’s talented team provides Quepasa with the means to offer and monetize culturally relevant social games to its Quepasa.com member base and other audience networks, like Orkut and Facebook, and eventually to mobile users across Latin America.

This latest investment comes in the wake of a recent deal between Quepasa and the US based eGames, for which Quepasa will publish and promote eGames’ titles on its Quepasa.com, in addition to other third-party social media platforms. The initial five eGames titles to be published and distributed by Quepasa were all developed by TechFront for eGames.

Quepasa expects the XtFt investment to allow its team of 41 full-time game developers focus on developing culturally relevant social gaming IP for the Quepasa platform and other social networks with audiences in Latin America. Other than that, the firm also hopes the investment will better position Quepasa to capitalize, as both a publisher of social games and a platform for playing social games, on the rapid growth and monetization of social games throughout Latin America.

Commenting further, Abbot noted that, as both a publisher of social games and social network, Quepasa will command a greater proportion of the revenues associated with social games on its own platform, while also participating in additional revenues generated on alternative social networks.