Quepasa Corporation (Quepasa.com), which operates the largest Latino social networks is expanding its reach to Latin America with the acquisition of XtFt Games, owner of Brazilian social game development studio TechFront. XtFt will be acquired for $3.7 million in Quepasa common stocks.

“The agreement to acquire XtFt follows Quepasa’s recently announced partnership with eGames to publish and promote eGames’ titles on Quepasa.com as well as on 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.”

The acquisition is aimed to strengthen Quepasa’s position in Latin America as a gaming destination. The internet giant had seen a 255% increase to its membership base in 2010 alone, and got 184 million page views in Dec. 2010, and social gaming was just a matter of time. Moreover, the addition ofXtFt expands Quepasa’s turf to web-based and console game development as well.

Social gaming is hot right now, and on top of Quepasa, there’s of course Zynga. We covered Zynga’s acquisition of mobile social game developer Area/Code, whose responsible for titles including “Drop7″ and “CSI Crime City” for iPhone and Android. Facebook is also involved with its own virtual currency system, and game developer Kabam recently raised $30 million in funding for its massive multiplayer social games.