Quess Corp divests stake in subsidiary Simpliance for USD 14.6 Mn

Quess Corp divests stake in subsidiary Simpliance for USD 14.6 Mn

The provider of HR compliance services Quess Corp Limited is expected to divest its entire stake in Simpliance Technologies Private Limited, a provider of digital risk and compliance services, to Aparajitha Corporate Services, an HR compliance services provider, and its affiliates.

On a cash and debt-free basis, the deal is estimated to have an enterprise value of around USD 14.58 million, pending closing adjustments and the fulfillment of the conditions mentioned in the transaction instrument.

Executive Director and Group CEO of Quess Corp. Guruprasad Srinivasan cited that they have sold their investment in Simpliance Technologies in accordance with the process of corporate structure simplification and business line reduction.

Moreover, the Simpliance team was assisted by the Bengaluru-based payroll company in developing a comprehensive tech platform that offers complete labor compliance solutions for modern India. While the shareholders of Quess have benefited greatly from this, they are also pleased that Simpliance has found a long-term home at Aparajitha Corporate Services.

India’s leading business service provider also stated that a strategic investment of USD 5,47,000 made between October 2016 and August 2018 for its entire 53% stake resulted in an enterprise value of approx USD 14.58 million.

However, the company will make sure that a considerable amount of value is unlocked from the investments made since its initial public offering (IPO) while it continues to pursue corporate structure simplification.

Quess Corp Limited was founded in Bengaluru in 2007 and offers a wide range of managed outsourcing and staffing services for functions like sales, marketing, customer service, and sales service. The business states that it employs over 4,70,000   people and serves more than 3,000 clients across India, the US, Asia-Pacific, and West Asia.

On the other hand, Simpliance offers tech-based solutions for governance, risk, and compliance. The company manages India's largest automated statutory compliance management platform, which aids businesses in abiding by Indian labor rules.

Source Credit:

https://www.livemint.com/companies/news/quess-corp-divests-stake-in-simpliance-for-rs120-crore-11665068179072.html