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India – TeamLease to acquire stake in Avantis

06 August 2018

Indian staffing firm TeamLease Services announced that is has signed a definitive agreement to acquire a stake in software company Avantis Softech.

TeamLease will invest INR 70 million (USD 1.0 million) in Avantis. The transaction involves a primary investment of INR 70 million (USD 1.0 million) through CCPS (Compulsorily Convertible Preference Shares) over the next three years. The valuation for conversion and purchase of additional stake by TeamLease is linked to Avantis's future performance and meeting its milestones.

Avantis will be converted into a private limited company and will operate as a separate and independent entity.

The transaction remains subject to customary closing conditions and regulatory approvals and is expected to close before the end of September 2018.

Avantis has expertise in governance, risk and compliance automation and the company says it has helped hundreds of organisations migrate from manual and people dependent processes to automated, framework-based solutions.

Avantis added that the funds would be primarily used to expand its business into new geographies, strengthen its existing technology and explore new forms of delivery.

Ashok Reddy, Managing Director, TeamLease Services, commented, "Our partnership with Avantis provides important infrastructure for our vision of paperless, presence less and cashless compliance for India's big and small entrepreneurial ecosystem. Making compliance painless will make India a more fertile habitat for formal job creation."

TeamLease recently acquired a majority stake in job portal Cassius Technologies (Fresher’s World).

No further details were announced.

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