TeamLease Services Ltd. has acquired 72.7% stake in IMSI Staffing Pvt. Ltd., a Dehradun-based company that develops enterprise software. Teamlease will acquire the balance 27.3% stake within 180 days.
The total acquisition sum for 100% stake was for a cash consideration equivalent to 6.5 times the acquired company’s profit before tax for the year ended March plus the net worth as on 12th November.
Incorporated in 2013, with over 1,800 associates deployed on more than 50 projects across India, IMSI Staffing helps clients to develop enterprise software and migrate to cloud, mobile and internet-based applications and had recorded a profit before tax of Rs 7.2 crore on revenue of Rs 48 crore for the said financial year. TeamLease on the other hand, has been operating since 2002, and mainly offers a temporary workforce to its clients, including senior managers on a short-term basis.
We, at Lawyers At Work advised and assisted TeamLease Services Ltd. on legal, structuring and regulatory aspects of the transaction including the negotiations and deal documentation. The deal was led by partner Talha Salaria.
Press coverage relating to the acquisition is available as follows:
November 13th, 2019