Topsgrup, a Mumbai-based security services provider, is in the process of acquiring 100 % stake in a UK-based firm for a consideration of around £70 mn in an all-cash deal.
The company has short-listed two British companies that are into the guarding business, and has already initiated negotiations with them. It will finalize one of the companies, acquisition value of which would be in the range of £40-70 mn. The deal is expected to be wrapped up by next month.
The acquisition would be financed using the funds received by way of dilution of 16% equity to ace investor Rakesh Jhunjhunwala one-and-a-half years ago. The company is also planning to come out with an initial public offer in 2008.
The security industry worldwide is currently pegged at $127 billion that includes guarding, investigation and electronic security. In India, the security industry is being termed as a sunrise industry in the financial, investment and business circles, and is estimated to be at around Rs. 1000 crores, fragmented by the unorganized sector at Rs. 200 crores. It is growing at a CAGR of 20%, and is going to be a dominating sector in the coming years.
Read the Business Standard article.
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