Security and Intelligence Services (India) Ltd said on Thursday that it will acquire 51% stake in Gurugram-based SLV Security Services for an undisclosed amount.
Delhi-based SIS will increase its shareholding in SLV in a mutually agreed manner over the next few years, the publicly listed security services firm said in a statement.
It added that the combine will help it secure the highest market share in the Gurugram-NCR market.
SLV, which was set up in 1986 by Vishal Swara and Shyam Swara, provides security services, electronic surveillance, event security/management and security consulting services.
The company currently generates more than Rs 240 crore in annual revenue with the majority of its income coming from the NCR region. It has over 650 customers and operates at 1,575 sites.
Vishal Swara will continue to drive SLV’s growth as the managing director and will be responsible for day-to-day management of the company.
KPMG advised SLV on the transaction.
Shares of SIS fell 0.82% on the BSE on Thursday to close at Rs 1051.20 apiece.
This marks the first strategic transaction for SIS since its initial public offering (IPO) and listing last year.
“Our M&A strategy is focused on becoming the leader in key micro markets and NCR market is one of them,” said Rituraj Sinha, group managing director, SIS Group.
Earlier this year, SIS’ Sinha had told VCCircle that the company had a Rs 1,000 crore war chest for M&As across segments.
“The focus is on India in terms of M&As,” he had added.
SIS, 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.
In 2008, it acquired Australia’s Chubb Security Personnel Pty Ltd which was renamed as MSS Security. Back home, the following year it struck a partnership with US-based ServiceMaster Corp to enter the facility management segment. In 2011 and 2012, it entered into joint ventures with Spanish security major Prosegur for cash logistics and Terminix from the US for pest control.
Subsequently, in 2013, it received the largest private equity investment in the security sector from CX Partners. The private equity firm still holds around 4% stake in SIS.
In December 2014, SIS acquired the cash and valuables services division of ISS SDB Security Services Pvt. Ltd in India to expand its cash logistics business.
Last year, SIS bought a 78.72% stake in facility management services provider Dusters Total Solutions for about Rs 117 crore.
In June 2017, the company, through its unit SIS Australia Group, also purchased a 41% stake in Southern Cross Protection Pty. Ltd (SXP) to take its total holding to 51%.
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