TeamLease buys ASAP Info Systems for Rs 67 crore

Bengaluru, July 4 (IANS) Leading human resources services firm TeamLease Services Ltd on Monday announced acquiring ASAP Info Systems Ltd for Rs 67 crore through its subsidiary.

"The transaction, which will be accretive to our earnings per share (EPS), will be funded from internal resources by August," TeamLease said in a statement here.

As a tier-1 IT staffing provider, Bengaluru-based ASAP offers staffing solutions to multinationals and domestic firms with 1,000 associates and 171 core employees.

ASAP reported Rs 63 crore revenue, with Ebitda (earnings before interest, tax, depreciation and ammortisation) of Rs.11 crore for last fiscal (2015-16).

The 14-year-old city-based TeamLease also offers staffing, payroll processing, recruitment, compliance and training services to about 1,400 clients across the country.

"The transaction creates an opening balance for us 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," said TeamLease co-founder and managing director Ashok Reddy.

TeamLease, which has been servicing IT firms for non-IT staffing positions, expects ASAP to help expand in the space post-merger.

"As TeamLeases’ vision of ‘putting India to work’ resonates with us, we were attracted to its track record of growth and long-term strategy of building an institution. We are confident that our combined capabilities and resources will create a formidable force in IT staffing," said ASAP director K.J. Suweresh.

In partnership with the Gujarat government, TeamLease has set up TeamLease Skills University (TLSU) at Vadodara.

In 2014-15, TeamLease rolled out national employability through apprenticeship programme) to provide on-the-job training to apprentices.

TeamLease has 125,000 associates/trainees across the country and has given jobs to 1.2 million people with an aim to hire millions more.