Security and Intelligence Services (SIS), a security service provider based in New Delhi is eyeing to acquire a majority stake in another security management company for around Rs 300 crore.
SIS is a BSE listed company and this acquisition will mark the very first acquisition by the security services provider that has created a war chest of around Rs 1,000 crore for acquisitions in the sector for next few years.
“The deal is as good as done,” a banker close to the development stated. “SIS would have a controlling stake in the company that currently has a revenue of around Rs 400 crore,” he added.
SIS is in advanced staged to take over the NCR based security and facility management company which hires around 15,000 people. However, the name of the company that is to be acquired could not be independently verified.
“The negotiations were on for about six months now and the sellers were concerned about the price and their position in the company after the deal. These issues have now been ironed out,” said a person familiar to the matter.
Talking about the IPO, SIS had raised around Rs 1,000 crore through pre-IPO, IPO placement and funding from an Australian bank which was for the purpose of non-organic growth through mergers and acquisitions in 2017.
Even prior to getting listed on the share market, SIS had been on an acquisition spree. Earlier in 2016, the company acquired a majority stake in Dusters Total Solutions, which is a facility management services provider based in Bengaluru, for around Rs 175 crore.
SIS is one of the largest security and cash management companies with a market valuation of Rs 7,937 crore. SIS’s profit increased to Rs 39.5 crore in June quarter this year as compared to Rs 21.5 crore in the same period last year.