Shares of staffing solutions provider TeamLease Services surged as much as 6 per cent to Rs. 935 at its day’s high after the Bengaluru-based company announced acquisition of Keystone Business Solutions.
Keystone Business Solutions offers IT staffing solutions and was incorporated on June 25, 2009. It operates through its registered office situated in Bengaluru.
TeamLease Services said the company has signed a definitive agreement to acquire 100 per cent shares in Keystone Business Solutions through its wholly owned subsidiary, TeamLease Staffing Services Private Limited, for Rs. 8.2 crore in cash.
TeamLease Services has indicated that it plans to complete the acquisition before January 31, 2017.
TeamLease Services also said that “the proposed acquisition does not fall within related party transaction and the promoters of the company have no interest in the entity proposed to be acquired.”
Analysts say that acquisition of Keystone Business Solutions will help TeamLease Services boost IT staffing solutions business and thus help improve its margins.
IT staffing business typically provides higher margin than general staffing business. TeamLease had earlier announced acquisition of ASAP Info Systems and Nichepro Technologies to boost its IT staffing business.
TeamLease had debuted on exchanges last year with offer price of Rs. 850.
At 11:24 am, shares of TeamLease Services were up 4.6 per cent at Rs. 919 as compared to a flat Sensex.