Shares of TeamLease Services jumped as much as 5.31 per cent in the morning trade on Monday after the staffing firm announced the signing of a definitive agreement to acquire ASAP Info Systems Private Limited.
At 10.54 am, shares of TeamLease Services were trading 4.94 per cent up at Rs 1,130. The scrip opened at Rs 1,100 and has touched a high and low of Rs 1,133 and Rs 1,064, respectively, in trade so far.
Later, shares of the company closed 2.61 per cent up at Rs 1,104.95.
In a BSE filing the company said, “TeamLease to acquire ASAP Info Systems for an enterprise value of Rs 67 crore 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 August 2016.”
The transaction remains subject to customary closing conditions and regulatory approvals.
Bangalore headquartered ASAP Info Systems realised revenue of approximately Rs 63 crore with an EBITDA of approximately Rs 11 crore in 2015-16. 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. ASAP is a Tier 1 staffing provider to reputed MNC’S. ASAP Info Systems operates through its offices across India, Bangalore being its corporate office and has branches across Chennai, Hyderabad, Gurgaon and Pune.
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.
Ashok Reddy, managing director, TeamLease Services Limited in a release said, “This transaction creates an opening balance for TeamLease to build an IT staffing business. The acquisition of ASAP is also consistent with our strategy of margin expansion through new product verticals and new client segments.”
For the quarter ended March 31, 2016, TeamLease Services reported net profit of Rs 9.14 crore, up 34.41 per cent against Rs 6.80 crore in the corresponding quarter a year ago.
Since listing, shares of TeamLease Services rallied 5.36 per cent to Rs 1,076.80 on July 1 from Rs 1,021.95 on February 12.