TeamLease Services gains on plans to acquire Nichepro Technologies

The stock was up 6% to Rs 1,167 after the company said that it will acquire Nichepro Technologies for an enterprise value of up to Rs 29.5 crore.

TeamLease Services was trading higher by 6% to Rs 1,167 on the BSE after the company announced that it will acquire Nichepro Technologies for an enterprise value of up to Rs 29.5 crore.

“The company has signed a definitive agreement to acquire Nichepro Technologies through its wholly owned subsidiary, TeamLease Staffing Services Private Limited, subject to customary closing conditions and regulatory approvals,” TeamLease Services said in a BSE filing.

Bangalore-headquartered Nichepro Technologies had revenue of around Rs 26 crore from staffing services with an EBITDA (earnings before interest, taxes, depreciation and amortization) of around Rs 6.8 crore in 2015-16.

"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," a company release said.

Nichepro offers IT staffing solutions to various IT product companies with over 150 associates and 30 core employees as of date. Nichepro is a Tier 1 staffing provider to reputed MNC’S and niche product companies.

Till 11:04 am, a combined 20,679 shares changed hands on the counter on the BSE and NSE.