Quess Corp said its Conneqt Business Solutions unit had entered into a deal to acquire a majority stake in Allsec Technologies, in a transaction that could be valued at as much as Rs 398 crore.
Conneqt will buy 35.35% of the company from the promoters and 26% from First Carlyle Ventures Mauritius, taking its holding in the company to 61.35%. Under SEBI guidelines, Quess will make an open offer to shareholders of Allsec to purchase upto 26% of the company.
“The total net cash outflow is expected to be between Rs 271 crore to Rs 398 crore (depending upon the subscription in the open offer and the shares purchased pursuant to underlying Transaction),” Quess told the Bombay Stock Exchange in a regulatory filing.
Allsec, which was founder in 1998, reported revenue of about Rs 325 crore in FY18. It has 3,500 employees across India, the Philippines and the United States.
“Apart from the business synergies, the transaction will be accretive to both Conneqt and Quess from Margins, Cash flow conversion as well as RoCE perspective thereby creating long term value for our shareholders,” Quess chairman and MD Ajit Isaac said in a statement.
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