Facility management services firm UDS, run by Chennai-based Updater Services Pvt Ltd, has acquired majority stake in business assurance and background verification services firm Matrix Business Services for an undisclosed amount.
As part of the deal, UDS has picked up 75 per cent stake in Matrix Business Services, including the entire 19.77 per cent stake of Kotak Mahindra Investments and 2.67 per cent of Mahindra & Mahindra Contech.
Founded in 2003, Matrix is in the business of providing assurance services, claims processing, employee background verification checks, product and process audits of warehouses, depots, distributors, retail points etc. The company has over 1000 employees and is spread across 70 cities. It caters a range of industries, including Information Technology, ITES, BFSI, retail, FMCG, consumer durables, pharmaceuticals, healthcare, hospitality and agro.
The acquisition of Matrix will expand UDS’ range of business services and the aim is to build a complete suit of business services, said Raghunandana Tangirala, founder and managing director of UDS. "Matrix will continue to be standalone business, but there will be cross selling between us to offer more services from the same roof," he said. He added that the funding for the acquisition was from internal accruals and that the company was looking for more acquisitions, which could complement its business. The company is also looking at going for an IPO in 18 months.
Matrix had posted a revenue of Rs 70 crore for the year ended March 31, 2019. Standalone revenue of UDS was Rs 1000 crore during the same period and is expected to grow to Rs 1200 crore this fiscal year. Founded in 1985, UDS has grown into a leading business services specialist, managing 250 million sq ft commercial space across India for about 700 clients with a strong workforce of over 46,000 permanent employees. It presently operate 21 full-fledged branches all over India.
According to reports, the company raised around Rs 100 crore from MOPE Investment Advisors in 2017 for 17 per cent stake. In 2015, New Vernon Private Equity picked up some stake, which was later sold to ICICI Venture. Tangirala brought back the stake from ICICI Venture later.
P C Balasubramanian, MD and CEO of Matrix, who will continue to spearhead the business for Matrix, said: “ We are a strong and growing force in India and, with UDS behind us, we will develop and grow our business at a much faster rate with the benefit of its expertise, national network, resources and technology.”