Japan-based internet job recruitment services provider en-Japan Inc has agreed to acquire controlling 60 per cent equity stake in privately held job placement agency NewEra India Consultancy Pvt Ltd for Rs 34.5 crore ($5.8 million), as per a statement.
As per the agreement the Japanese firm will acquire 60 per cent of Delhi-based NewEra from its promoter and CEO Arvind Sehgal. The remaining 40 per cent stake is to be acquired in 2016.
Arvind Sehgal owns 90 per cent stake in the company, while Archana Chawla and Manoj Sehgal hold 5 per cent each.
NewEra India offers job placement services, particularly in the information technology field, and counts many global companies as its clients. It has operating sites in major cities across and the country and is looking to strengthen its presence going forward.
It has 331 employees and had revenues of Rs 15.7 crore with net profit of Rs 2.05 crore in FY13.
“In expectation that this equity participation will bring synergies with the en Group’s client base and expertise, we will focus on expanding transactions particularly with Japanese companies to achieve further growth of New Era,” en-Japan said in the statement.
Genesis Capital is the advisor to NewEra in the deal.
Earlier in February, another Japanese firm Outsourcing Inc bought 51 per cent equity stake in Bangalore-based hiring firm Alp Consulting for $5 million (about Rs 31.2 crore), valuing the Indian firm at around Rs 61 crore (nearly $9.8 million). The acquisition was part of Outsourcing Inc’s plans to strengthen its foothold in the fast-growing Indian employment market.
(Edited by Joby Puthuparampil Johnson)