Livemint: July 04, 2016
New Delhi: Leading staffing company TeamLease Services Ltd on Monday said it has acquired Bengaluru-based ASAP Info Systems Pvt. Ltd for Rs.67 crore.
The company said the acquisition will help it expand its footprint in the core IT hiring space.
ASAP Info Systems had a revenue of approximately Rs.63 crore with an Ebitda (earnings before interest, taxes, depreciation and amortization) of Rs.11 crore last fiscal year. Ebitda is an indicator of a company’s profitability.
“TeamLease will acquire ASAP Info Systems for an enterprise value of Rs.67 crore through its wholly owned subsidiary, TeamLease Staffing Services Private Ltd. The transaction, which will be immediately accretive to TeamLease’s earnings per share, will be financed with existing financial resources and is expected to close before the end of August 2016,” India’s first listed staffing company said in a statement.
ASAP Info has over 1,000 associates and 171 core employees.
“This transaction creates an opening balance for TeamLease to build an IT staffing business. The acquisition is also in sync with our strategy of margin expansion through new product verticals and new client segments,” TeamLease managing director Ashok Reddy said.
The TeamLease stock was trading at Rs.1,108 at 11.42am on the National Stock Exchange on Monday, up 2.35% from its previous close.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.