Staffing company TeamLease Services Ltd has agreed to acquire Pune-based Evolve Technologies and Services Pvt. Ltd for Rs 36.68 crore ($5.66 million) in its fifth acquisition within 15 months.
The all-cash acquisition will be done through wholly owned subsidiary TeamLease Staffing Services Pvt. Ltd and is likely to be completed by the end of November, TeamLease said in a stock exchange filing on Monday.
TeamLease managing director Ashok Reddy said the acquisition of Evolve—which was incorporated in July 1991 and led by founder and director Amitoj Sethi—is in line with the company’s long-term strategy of expanding its footprint into specialised areas of staffing.
Reddy said TeamLease and Evolve will jointly address the needs of the telecom market at a time when there is a need for rapid and skilled field deployment of advanced technologies.
TeamLease, which listed on the bourses in February last year after an initial public offering (IPO) that saw huge investor turnout, 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.
In July 2016, TeamLease agreed to acquire ASAP Info Systems for Rs 67 crore to provide recruitment services to IT companies.
In January this year, TeamLease acquired another Bengaluru-based firm Keystone Business Solutions Pvt. Ltd for Rs 8.2 crore. Its most recent acquisition was Cassius Technologies Pvt. Ltd in May 2017.
Teamlease had raised more than Rs 400 crore in the IPO 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.
Evolve is mainly involved in providing temporary staffing to clients in the telecom and IT sector. As on 30 September, the company had provided more than 4,000 associates at client locations. The firm has 150 core employees.
“We are excited by the opportunity to enhance our range of services to existing clients and to expand our client base.
Further, the combined platform enhances opportunities for long-term career development for our young and passionate employees,” Sethi said on the deal with TeamLease.
Evolve will continue to operate as a separate and independent entity post acquisition, as per its filings.
Evolve posted a total turnover Rs 108.64 crore for financial year 2016-17 compared with Rs 81.77 crore for FY2015-16 and Rs 41.33 crore in the year prior.