Staffing services firm TeamLease Services will acquire NichePro Technologies for an enterprise value of up to Rs 29.5 crore.
TeamLease today said it has signed a definitive agreement to this effect, and the transaction remains subject to customary closing conditions and regulatory approvals.
TeamLease will acquire NichePro through its wholly-owned subsidiary, TeamLease Staffing Services Private Limited.
“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 October 2016,” a company release said.
Bangalore-headquartered NichePro Technologies had a revenue of around Rs 26 crore from staffing services with an EBITDA of around Rs 6.8 crore in 2015-16.
“This acquisition helps us to tap into the niche IT staffing for product companies and complements our recent acquisition of ASAP Info Systems which caters to IT services companies,” TeamLease Services Managing Director & co-Founder Ashok Reddy said.
NichePro offers IT staffing solutions to various IT product companies. NichePro is a Tier I staffing provider to reputed MNCs and niche product companies.
“The use of staffing by IT companies is increasing rapidly as they accelerate their productivity focus and look to variablize costs,” Reddy added.
TeamLease is one of India’s leading human resource service companies. Currently, it has 8 offices and 1400 clients across the country.