Japanese staffing firm Outsourcing Inc has 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 is part of the Japanese firm's plans to strengthen its foothold in the fast-growing Indian employment market.
The company decided to acquire 51 per cent of Alp Consulting and all shares of Datacore Technologies Pvt Ltd, a subsidiary of Alp Consulting.
"Alp will acquire all of the outstanding shares of Datacore, making it a subsidiary. After that the company plans to subscribe to all of the 552,556 shares issued by Alp through capital increase and also acquire 382,320 shares of Alp," the company had said. The share transfer closed on January 28, 2014.
Alp Consulting, which will become a subsidiary of Outsourcing Inc, has so far provided employment to nearly 4,000 people in the country.
Datacore will remain wholly-owned subsidiary of Alp Consulting. The firm had revenues of Rs 76 crore with net profit of Rs 77 lakh in FY13.
"By making the Alp Group a subsidiary, the company will enter the India market which is expected to continue developing going forward,” Outsourcing Inc said in a statement. Alp Consulting offers HR outsourcing and staffing services across six cities—Mumbai, Hyderabad, Delhi, Chennai, Noida and Pune.
With the acquisition, Outsourcing Inc—which provides contracting and staffing service to global companies like Suzuki, Toyota and Sony—is looking to meet the staffing needs of the Japanese companies which are aiming to augment their presence in India. Currently, it has 17 Japan-based companies and 19 overseas firms under its umbrella.
Earlier in 2010, Ajit Isaac—who sold off its PeopleOne Consulting to Swiss staffing major Adecco in 2004—had acquired Hyderabad -based staffing firm Magna Infotech for Rs 100 crore. Isaac's Ikya Human Capital, which was backed by PE firm India Equity Partners, was in turn acquired by Prem Watsa's Thomas Cook India last year.
(Edited by Joby Puthuparampil Johnson)