TeamLease to acquire NichePro Tech for Rs 29 crore

The move will help it get into higher margin business to place product engineers

TeamLease Services Limited is expanding its focus on the higher margin IT staffing business by acquiring local rival NichePro Technologies for Rs 29 crore, its second buy this year.

"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. The use of staffing by IT Companies is increasing rapidly as they accelerate their productivity focus and look to variablize costs." Ashok Reddy, Managing Director & co-Founder, TeamLease Services Limited said in a statement.

NichePro, which helps higher qualified engineers to be placed in multinational and niche product companies had reported revenues of Rs 26 crore with a margin of Rs 6.8 crore last fiscal. TeamLease plans to fund this acquisition through internal resources. It employs 30 people and has over 150 associates recruit staff for its clients

In July, TeamLease acquired another local rival ASAP Info Systems for Rs 67 crore. (EOM)