Armed with a recent fund infusion from India-focussed PE fund Gaja Capital, temp staffing major Teamlease Services is acquiring Indian Institute of Job Training (IIJT), a large vocational training provider based in Gurgaon. The value of the transaction was undisclosed.
As part of the deal, Teamlease will buy out majority stake held by US-based PE fund Tiger Capital in IIJT. Tiger Global Management LLC acquired 25% stake in New Delhi based IIJT Computer Education Ltd in 2007.
The promoters, led by IIJT chairman Devesh Srivasthava, will continue to run the firm. The buyout is through a combination of internal accruals and a private equity infusion from Gaja Capital, an India focussed private equity fund.
The deal translates into buying out existing shareholders (founders and Tiger Capital Management) and infusion of new capital into the company. Teamlease has an option to take full ownership of the company at a future date, it said in a statement.
Post the deal, Teamlease will offer its corporate client base of over 1,200 companies three products; Hiring (Permanent and Temporary), Hygiene (Payroll, Benefits and Compliance Administration) and Productivity (Assessments and Training).
Teamlease will run IIJT as a separate subsidiary. IIJT has a major presence in North and East India with a network of over 250 centres and a capacity to train 100,000 students at any given time which includes sales, retail, finance, accounting and ICT.
Teamlease will be spending Rs 75 crore over the next two years on IIJT. It will use the proceeds to expand IIJT into South and other parts of the country and to expand IIJT’s portfolio.
In a press statement, Devesh Srivasthava, chairman of IIJT, said, “we have been growing fast for the past few years. But taking things to the next level required a partner that brought an employment ecosystem because vocational training consumers — students and parents — are increasingly demanding employment outcomes. As India’s largest staffing company, Teamlease was a logical partner.”