TeamLease Services gains after acquisition

TeamLease Services rose 2.68% to Rs 1,105.70 at 12:07 IST on BSE after the company announced the signing of a definitive agreement to acquire ASAP Info Systems.

Meanwhile, the BSE Sensex was up 215.50 points, or 0.79%, to 27,360.41.

On BSE, so far 11,000 shares were traded in the counter, compared with an average daily volume of 11,739 shares in the past one quarter. The stock hit a high of Rs 1,134 and a low of Rs 1,064 so far during the day. The stock hit a record high of Rs 1,207.70 on 16 February 2016. The stock hit a record low of Rs 790 on 28 April 2016. The stock had outperformed the market over the past 30 days till 1 July 2016, rising 16.66% compared with 1.12% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 19.51% as against Sensex's 7.42% rise.

The small-cap company has an equity capital of Rs 17.10 crore. Face value per share is Rs 10.

TeamLease Services announced during trading hours today, 4 July 2016, that it will acquire ASAP Info Systems for an enterprise value of Rs 67 crore through its wholly-owned subsidiary, TeamLease Staffing Services. 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. The transaction remains subject to customary closing conditions and regulatory approvals.

Bangalore headquartered ASAP Info Systems realized revenue of approximately Rs 63 crore with earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately Rs 11 crore in the financial year ended March 2016 (FY2016). 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. ASAP is a Tier 1 staffing provider to reputed MNCs. ASAP Info Systems operates through its offices across India, Bangalore being its corporate office and has branches across Chennai, Hyderabad, Gurgaon and Pune.

TeamLease said it has long serviced IT companies for non-IT staffing positions and expects ASAP to help continue expansion in the space after merging its current offices.

Net profit of Team Lease Services rose 34.41% to Rs 9.14 crore on 25.31% rise in net sales to Rs 654.04 crore in Q4 March 2016 over Q4 March 2015.

TeamLease Services provides human resource services. Its services span the entire people supply chain of human resources, covering employment, employability and education. Its employment services include staffing solutions, recruitment services and compliance services. The company's employability offerings include different types of learning and training solutions for retail, institutional and enterprise customers.

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