TeamLease signs definitive agreement to acquire NichePro Tech

BENGALURU: Staffing firm TeamLease Services Limited today announced signing of a definitive agreement to acquire NichePro Technologies (NichePro) for an enterprise value of about Rs 29.5 crore.

The transaction remains subject to customary closing conditions and regulatory approvals, the company said in a release.

It said TeamLease would acquire NichePro for an enterprise value of up to Rs 29.5 crore 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 October 2016, it added.

NichePro offers IT staffing solutions to various IT product companies with over 150 associates and 30 core employees as of date.

It is a Tier 1 staffing provider to reputed MNC'S and niche product companies.

"This acquisition helps us to tap into the niche IT staffing for product companies and complements our recent acquisition of ASAP Info Systems which caters to IT services companies," TeamLease Services Limited Managing Director & co-Founder Ashok Reddy said.

He said "The use of staffing by IT Companies is increasing rapidly as they accelerate their productivity focus and look to variablise cost."

TeamLease Services said the city headquartered NichePro Technologies realised revenue of approximately Rs 26 crore from staffing services with an EBITDA of approximately Rs 6.8 crore in FY2016.