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PE consortium\'s HR platform buys Raj Vattikuti\'s Indian staffing services firm
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FirstMeridian, a human resources investment platform set up by Samaara Capital, Goldman Sachs and Janchor Partners, has fully acquired an IT-focussed staffing firm set up by a seasoned technology services entrepreneur.

The Bengaluru-based company has bought a 100% stake in CBSI India Pvt Ltd, which is the domestic entity of the larger CBSI. The acquisition of the Indian arm is being made through an investment of Rs 12 crore ($1.6 million), FirstMeridian said in a statement.

CBSI – formerly known as Synova – was founded in 2004 by Raj Vattikuti, who also founded the Altimetrik Group and the Covansys Group. The latter was acquired by Computer Sciences Corporation in 2007 for around $1.3 billion.

FirstMeridian chief executive officer Sudhakar Balakrishnan said the acquisition will enhance its IT sector-specific staffing offering and presence in the industry. 

“With this strategic acquisition, we are now fully equipped to fulfil the surge in demand for a qualified IT workforce throughout the country,” he added.

The acquisition of CBSI India comes after FirstMeridian in July acqui-hired a business unit of HR Cornucopia Pvt Ltd for an undisclosed sum. At the time, it said the unit would become a part of V5 Global, a portfolio company.

Since its inception in mid-2018, FirstMeridian has acquired at least three other HR solution providers, namely, Innovsource, V5 Global and Affluent Global, across various segments in the industry. Its services include general and professional staffing, permanent recruitment, managed services and HR-technology and automation.

Among recent deals in the staffing space, Awign Enterprises Pvt. Ltd, which operates a work fulfilment solutions provider, raised $4 million (Rs 28.3 crore) in its Series A funding round from a clutch of investors.

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