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Staffing firm TeamLease Services Ltd on Monday said it is expanding its services to staffing solutions for IT services firms by acquiring ASAP Info Systems for Rs 67 crore. The acquisition of ASAP Info Systems, will help expand its margins as IT staffing for multinational and Indian technology firms is more lucrative than staffing blue collar workers. ASAP employs 171 people and has over 1,000 associates.
"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," said, Ashok Reddy, managing director and co-founder TeamLease Services Limited in a statement.
Investors rewarded the stock for this move. TeamLease stock rose 3.19% or Rs 34.40 at Rs 1111.20 at 14.20 hours on the Bombay Stock Exchange.
The transaction will be done through TeamLease' s 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 thus year. The transaction remains subject to customary closing conditions and regulatory approvals, it said.
"We are glad that we were able to come to an agreement with TeamLease. Their vision of "Putting India to Work" resonated with us. Further, we were attracted to their track record of growth and long-term strategy of building an institution. We are confident our combined capabilities and resources will create a formidable force in IT staffing," said, K J Suwresh, Director, ASAP Info Systems Private Limited.
