Aparajitha Corporate Services Private Limited, one of India's firms in regulatory and social compliance services, has announced its plans to acquire the 'labour law' compliance business from Allsec Technologies, top payroll services provider in India. The transaction is slated to be finalised by March 31 of this year, having been valued at an Enterprise Value of Rs 27 crore, on a cash and debt-free basis.
This acquisition is deemed a strategic move for Aparajitha, further reinforcing its robust offering of specialised regulatory and social compliance solutions. Nagaraj Krishnan, Managing Director at Aparajitha, explained that the merger aims to yield a consolidation of their position as compliance service leaders. "This transaction will strengthen our comprehensive regulatory and social compliance solutions... and consolidate our position as the leader in compliance services," Krisnan remarked. "We welcome all the team members and intend to provide them with a large platform for professional growth while operating in a domain expertise-led and tech-enabled work environment."
Allsec Technologies, on the other hand, perceives this development as an opportunity to refine its operating structure to better focus on its higher margin growth businesses - Customer Experience Management (CXM) & Employee Experience Management (EXM). This arrangement aligns with the company's broader strategy to withdraw from the labour law compliance business.
Naozer Dalal, CEO of Allsec Technologies Ltd, assures a seamless transition experience for their customers whilst highlighting the importance of this transaction. "The transaction will lead to simplification of our operating structure and enable sharper management focus on our CXM & EXM businesses, thus optimizing future business results," Dalal said. "We look forward to partnering with Aparajitha, to provide a seamless transition experience to our customers, many of whom we will continue to associate with for our other services."
The implications of this acquisition deal will position Aparajitha Corporate Services in a commanding market leadership standing within the compliance solutions segment, due to the combined power of its regulatory and social compliance services with digital tools. Conversely, Allsec Technologies would be able to better streamline its operations, concentrating more on its key growth businesses, thereby optimising future business outcomes.
Founded in 2000, Aparajitha Corporate Services Private Limited provides solutions to approximately 2,000 organisations and has been renowned for setting the standards for compliance, including social compliance and risk management solutions across industries. It is India’s largest Labour, Employee and Industrial (LEI) compliances service provider.
Allsec Technologies Limited, headquartered in Chennai, has been a pioneer in the EXM and international CXM spaces, and is currently the leading payroll services providers in India. Founded in 1998, Allsec is a global brand, offering high-end business process solutions across key industry verticals in 40 countries.