TeamLease Services to acquire stake in Avantis Softech
New Delhi: Staffing services company TeamLease Services today said it will acquire stake in Compliance and Regulatory Technology Company Avantis Softech LLP and has signed a definitive agreement to this effect.
"The transaction involves a primary investment of Rs 7 crore through CCPS (Compulsorily Convertible Preference Shares) over the next 3 years," a company statement said and added that the valuation for conversion and purchase of additional stake by TeamLease is linked to Avantis's future performance and meeting its milestones.
Avantis has expertise in governance, risk and compliance automation and has helped organisations migrate from manual and people dependent processes to automated, framework based solutions.
The infused funds shall be primarily used to expand its business into new geographies, strengthen its existing technology and explore new forms of delivery, the statement said.
The transaction is subject to customary closing conditions and regulatory approvals and is expected to close before the end of September 2018.
"Our partnership with Avantis provides important infrastructure for our vision of paperless, presenceless and cashless compliance for India's big and small entrepreneurial ecosystem," said Ashok Reddy, Managing Director, TeamLease Services.