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News: Teamlease informed the stock exchange that it has acquired 90% stake in TSR Darashaw for and balance 10% stake will be acquired in the upcoming FY with an overall valuation of ₹ 17.6 crore. Additionally, it will also acquire 30% stake in Crystal HR and Security Solutions in an all cash deal and balance 70% shall be acquired in multiple tranches with an overall valuation of ₹ 25 crore, subject to the Board’s approval. Both the acquisitions will be completed within a span of 1 and 4 years respectively. TSR Darashaw is in the business of providing HR services, including but not limited to, payroll processing, reimbursement processing, F&F settlements and investment proof checking. Crystal HR and Security Solutions specializes in HR technology, offering digital workforce solutions under its brand, Wallet HR.
Views: With a revenue of ₹9.2 crore for TSR Darashaw and ₹10.5 crore for Crystal HR in FY24, both the deals implied a valuation of 1.9x and 2.4x Price to Sales respectively. The acquisition of Darashaw will help the company in strengthening its market position in the Managed Payroll services space in India by giving them the access to an existing client base of 70 enterprises with over 1.65 lakh records. Whereas Crystal HR will help them in the Human Capital Management space in India by giving an access to a full spectrum HR SaaS platform with an existing client base of 400+ corporates and over 3 lakh records processed per month.
Impact: Positive