Staffing company TeamLease Services today said it will acquire ASAP Info Systems for an enterprise value of Rs 67 crore.
The Bengaluru-headquartered ASAP Info Systems offers IT staffing solutions to various MNCs and domestic companies, with over 1,000 associates and 171 core employees as of date.
“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,” the company said in a statement.
TeamLease Services has signed a definitive agreement to this effect.
The transaction will be done through TeamLease’s wholly-owned subsidiary TeamLease Staffing Services Private and subject to customary closing conditions and regulatory approvals.
“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 Services MD and Co-Founder Ashok Reddy said.
TeamLease has long serviced IT companies for non-IT staffing positions and expects ASAP to help continue expansion in the space after merging its current offices.
K J Suwresh, Director, ASAP Info Systems, said : “We are confident our combined capabilities and resources will create a formidable force in IT staffing.”
ASAP Info Systems posted revenue of around Rs 63 crore with an EBITDA of around Rs 11 crore in 2015-16.