Security and Intelligence Services (India) Ltd has agreed to buy a 60% stake each in Singapore-based Henderson Security Services Pte. Ltd and Henderson Technologies Pte. Ltd for 43 million Singapore dollars ($31.8 million or Rs 226 crore) in cash.
The buy will help Delhi-based Security and Intelligence Services enter Singapore and expand its presence in the Asia-Pacific region.
Security and Intelligence Services would buy the remaining 40% stake each in the firms between October 2020 and April 2024, the company said in a stock-exchange disclosure.
The transaction is expected to close by 28 February.
The Henderson Group provides manned guarding services and builds mechanical and electrical services including electronic security services. It has over 1,500 employees across more than 200 sites.
Its clients include residential condominiums, commercial spaces, government and public transport.
For the financial year 2016-17, the revenue of Henderson Security Services was 51.9 million Singapore dollars as against 48.7 million Singapore dollars the previous year. Henderson Technologies revenue stood at 6.1 million Singapore dollars, up from 3.5 million Singapore dollars, during the period.
Security and Intelligence Services, which was set up in Patna in 1985, has a history of acquisitions across all its three verticals — security services, cash logistics and facility management. It made its stock market debut in 2017.
In 2018, Security and Intelligence Services Group managing director Rituraj Sinha told VCCircle that the company had a Rs 1,000 crore war chest for mergers and acquisitions across segments.
Last month, Security and Intelligence Services agreed to buy a 51% stake in Bengaluru-based Uniq Detective and Security Services for Rs 51 crore. However, the final deal value will be calculated based on the Ebitda (earnings before interest, tax, depreciation and amortisation) for financial year 2018-19.
In October last year, Security and Intelligence Services entered into an agreement to acquire 80% stake in Mumbai-based facility management services provider Rare Hospitality and Services Pvt. Ltd. for Rs 50.4 crore. Security and Intelligence Services would acquire the remaining 20% stake in 2020.
In August last year, Security and Intelligence Services agreed to pick up a 51% stake in Gurugram-based SLV Security Services for an undisclosed amount.