Modern India Limited (erstwhile Modern Mills Limited) today announced that it has entered into a Share Purchase Agreement with Verifacts Services Private Limited. Under this agreement, the company will buy 76% equity stake in Verifacts Services for Rs 28 crores. With this addition, Modern India Limited will mark its foray into the business of verifications services.
Verifacts Services Private Limited, headquartered in Bangalore, is a human resources consulting company providing background/ antecedents verification services. Background verification refers to a process employed by companies to check on the past academic and work records of prospective employees, before they are hired.
Vijay Kumar Jatia, Chairman of Modern India Limited said, "The acquisition of the verification services businesses is a value enhancing and forward-looking initiative for Modern India Limited. We have been clear about our intention to focus on growth initiatives in India and international markets, which together are expected to be key drivers for future growth. This transaction will complement our strategy of pursuing organic growth along with value-creating acquisitions within our served markets andadding complimentary growth platforms to provide scale and revenue diversity."
According to Col. Swapan Bhadra, Chairman of Verifacts Services this transaction will permit Verifacts Services Private Limited to focus management time and resources to support accelerated growth of other markets and industry verticals.