This acquisition will enable TeamLease to expand its reach and enter the IT staffing space for its esteemed IT clients, to whom it was only providing non-IT staffing services till now.
TeamLease Services has acquired ASAP Info Systems, the Bangalore headquartered IT staffing company. TeamLease signed a definitive agreement to acquire ASAP Info Systems, while the transaction remains subject to customary closing conditions and regulatory approvals.
This acquisition will enable TeamLease to expand its reach and enter the IT staffing space for its esteemed IT clients, to whom it was only providing non-IT staffing services till now. Ashok Reddy, managing director & co-founder, TeamLease Services, says, “This transaction creates an opening balance for TeamLease to build an IT staffing business. The acquisition is also in sync with our strategy of margin expansion through new product verticals and new client segments”.
Sharing the pull behind joining hands with the HR service company, KJ Suwresh, director, ASAP Info Systems, says, “We are glad that we were able to come to an agreement with TeamLease. Their vision of ‘Putting India to Work’ resonated with us. Further, we were attracted to their track record of growth and long-term strategy of building an institution. We are confident our combined capabilities and resources will create a formidable force in IT staffing”.
TeamLease will acquire ASAP Info Systems for an enterprise value of Rs 67 crores through its wholly owned subsidiary, TeamLease Staffing Services Private Limited. The transaction, which will be immediately accretive to TeamLease’s earnings per share, will be financed with existing financial resources and is expected to close before the end of August, 2016. Currently, the company has eight offices and 1400 clients across the country. At present it has about 125,000 associates/ trainees spread across the country and has till date given employment to 1.2 million people with an aim to hire millions more. At the same time, ASAP Info Systems offers IT staffing solutions to various MNCs and domestic companies with over 1,000 associates and 171 core employees as of date.