Staffing firm TeamLease Services Ltd has agreed to acquire Bengaluru-based Keystone Business Solutions Pvt. Ltd for Rs 8.2 crore (around $1.2 million) in its third known deal within seven months as the firm seeks to strengthen its information technology staffing vertical, it said in a stock market disclosure.
The acquisition, which will be done through its wholly-owned subsidiary TeamLease Staffing Services Pvt. Ltd in an all-cash deal, is expected to be completed by the end of this month, it said.
Keystone Business Solutions was set up in June 2009. The company offers IT staffing services to enterprise customers in banking, manufacturing, retail and healthcare industries.
TeamLease, which listed on the bourses in February last year after an initial public offering (IPO) that was heavily oversubscribed, has been on an acquisition spree in the past months. In its share sale document, TeamLease had said that it planned to use part of the proceeds from the IPO for acquisitions.
In September last year, the company agreed to buy Bengaluru-based NichePro Technologies Pvt. Ltd for Rs 29.5 crore ($4.4 million).
In July 2016, TeamLease agreed to acquire ASAP Info Systems for Rs 67 crore ($10 million) to provide recruitment services to IT companies.
During the IPO, the company raised more than Rs 400 crore and said it planned to use around Rs 80 crore for existing and incremental working capital requirements, Rs 25 crore for acquisitions and other strategic initiatives, and Rs 15 crore to upgrade its IT infrastructure.
TeamLease, which has been operating since 2002, mainly offers temping services where it provides temporary workforce to its clients in bulk on a contract. This allows clients to hire without adding to their direct employee base. This employment and business model is closely associated with sectors like manufacturing, banking, BPO and retail, among others. Temping also involves hiring senior level managers on a short-term basis.
TeamLease also offers permanent staffing services. The company has eight offices and 1,400 clients across the country.
Shares of TeamLease ended at Rs 888 apiece, up 0.42%, on the BSE in a flat Mumbai market on Monday.
Quess Corp, part of Fairfax-controlled Thomas Cook and earlier known as Ikya, is another firm that offers staffing service. Quess Corp too raised Rs 400 crore through an IPO recently.
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