Quess Corp Ltd, India's leading business services provider, announced today that it has entered into definitive agreements to divest its stake in the digital risk and compliance services company, Simpliance Technologies Private Limited ("Simpliance") to Aparajitha Corporate Services ("Aparajitha"), a leading HR compliance services company and its affiliates. The deal is valued at an Enterprise Value of INR 120 crores, on a cash and debt free basis, subject to closing adjustments and fulfilment of conditions set out in the transaction document.
Speaking on the occasion, Mr. Guruprasad Srinivasan, Executive Director and Group CEO, Quess Corp, said, "In line with the Corporate structure simplification process and rationalization of business lines, we have divested our stake in Simpliance Technologies Private Limited. Quess helped the Simpliance team to build a comprehensive tech platform which provides total labour compliance solutions for digital India. While this has created great value for the Shareholders of Quess, we are also happy that Simpliance has found a permanent home at Aparajitha Corporate Services."
Lt Cdr. Anil Prem D'Souza, Founder & CEO, Simpliance and an Indian Navy veteran said, "Being a part of the Quess family since 2016 has helped us to build scale, leveraging the Quess' platform and their management expertise. We look forward to partnering with Aparajitha Corporate Services, to seamlessly integrate our SaaS Offerings to create holistic bundled products for our customers across the value chain."
Mr. Nagaraj Krishnan, Managing Director, Aparajitha Corporate Services, said "The combination with Simpliance will enable us to offer comprehensive compliance solutions - best-in class services combined with digital tools and emerge as the undisputed leader in the Labor, Employee, Industrial Compliance segment. We welcome Anil and his team and intend to emerge as technology and data oriented compliance solution provider with strong regulatory domain expertise in India and other regions."
For Quess, a strategic investment of Rs.4.5Crs for its total 53% shareholding made between Oct-16 and Aug-18 has yielded an enterprise value of Rs.120Crs. While we continue to pursue our corporate structure simplification process, we will ensure significant value unlocking from the investments made since our IPO.