Quess Corp subsidiary acquires Allsec Tech
Quess Corp’s subsidiary Conneqt Business Solutions has signed definitive agreements to acquire a majority stake in Allsec Technologies. The transaction will involve Conneqt purchasing 35.35 per cent from the promoters, 26 per cent from First Carlyle Ventures Mauritius thereby acquiring majority control of 61.35 per cent. Conneqt will make an open offer to the public shareholders of Allsec to purchase up to 26 per cent of shareholding.
Allsec Technologies provides various business process solutions across industry verticals. The company operates across two segments globally, namely Human Resources Operation(HRO) covering HRMS, Statutory compliances, payroll services, time and attendance management, and Customer Lifecycle Management (CLM) which encompasses lead generation, customer retention and relationship management comprising both voice and non-voice processes.
The acquisition will strengthen non-voice services exposure. Allsec’s CLM operations have an equal share of voice and non-voice revenue. Given that Conneqt has significant voice share, the combined entity will have a diversified revenue stream with increased contribution from the high margin non-voice business. The acquisition will help the company establishing a diversified revenue stream via an established HRO practice. The existing delivery centre in the Phillipines will help acquire more voice contracts from the US. Also, US operations and sales presence will help accelerate International revenue for Conneqt.
On Thursday, Quess Corp was trading at Rs.724.2 per share, up 0.58 per cent on the BSE.