Security and Intelligence Services (India) Ltd (SIS) said it will buy the remaining 50% stake in SIS Prosegur Alarm Monitoring and Response Service Pvt. Ltd (SPARMS) from Singpai Alarms Pvt. Ltd.
SIS will pay a consideration of Rs 20 crore for the acquisition of SPARMS to become its wholly-owned subsidiary, said SIS in a stock market disclosure. The acquisition is expected to be completed this month, it added.
SIS currently holds 22.5% stake in SPARMS while 27.5% is held by its other wholly-owned unit, Service Master Clean Ltd.
Founded in 2015, SPARMS provides alarm monitoring and response services across 1,365 sites to around 880 customers which primarily include private sector banks, private residences and commercial complexes. The Gurugram-based company has over 106 employees.
SPARM's turnover rose from Rs 0.28 crore in the financial year ended 31 March 2017 to Rs 2.04 crore in 31 March 2018.
SIS was set up in Patna in 1985 and made its stock market debut in 2017. The company has made a number of acquisitions across its three verticals — security services, cash logistics and facility management.
In 2018, SIS group managing director Rituraj Sinha had told VCCircle that the company had a war chest of Rs 1,000 crore for mergers and acquisitions across segments.
Earlier in February, SIS had agreed to buy a 51% stake in New Zealand-based Platform 4 Group Ltd to expand its overseas business.
In January, SIS had agreed to buy a 60% stake each in Singapore-based Henderson Security Services Pte. Ltd and Henderson Technologies Pte. Ltd for about $31.8 million. In December last year, it had agreed to buy a 51% stake in Bengaluru-based Uniq Detective and Security Services for about Rs 51 crore.
In October, SIS had agreed to acquire an 80% stake in Mumbai-based facility management services provider Rare Hospitality and Services Pvt. Ltd for Rs 50.4 crore. It would acquire the remaining 20% stake in 2020.
SIS competes with Tops Security Ltd and G4S in the security services segment. In the facility management, cash logistics and similar sectors, it competes with Quess Corp and Tenon Group.