The Board of Directors of Allsec Technologies Ltd at its meeting held on 10th September, 2019 has considered and accepted the recommendations of the Audit Committee, for the purchase of HR Compliance Business of Coachieve Solutions Private Limited ('CoAchieve') as a going concern on a slump sale basis from CoAchieve for a lump sum cash consideration, without values being assigned to individual assets and liabilities as contemplated under the Income Tax Act, 1961, on such terms and conditions as contained in the Business Transfer Agreement ('BTA').
The Audit Committee and the Board of Directors have approved the execution of BTA between the Company and CoAchieve.
CoAchieve is a wholly owned subsidiary of Quess Corp Limited, a public limited company, having its registered office at Bangalore, Karnataka. CoAchieve does not have any presence outside India.
Quess Corp Limited and the Company are related parties. Accordingly, the transaction is a related party transaction. Accordingly, the transaction is undertaken at "arm's length". CoAchieve is not part of the promoter or promoter group of the Company.
The turnover of CoAchieve is approximately INR 34.94 crores as on March 31, 2019.
The acquisition of HR Compliance Business of CoAchieve pursuant to the BTA would result in growth opportunities in line with strategic directions of the Board of Directors of the Company.
The consideration to be paid for the acquisition will be INR 16,80,00,000/- (Rupees Sixteen Crores and Eighty lakhs Only).