Security and Intelligence Services (India) Ltd has agreed to buy a 51% stake in New Zealand-based Platform 4 Group Ltd to expand its overseas business.
The Indian company will pay 1.34 million New Zealand dollars (about $910,000, or Rs 6.5 crore) in cash for the 51% stake in Platform 4 Group, it said in a stock-exchange disclosure. The company has an option to buy the remaining 49% stake in 2021.
The Delhi-based company will pick up the stake through unit SIS Australia Group Pty Ltd. The transaction is likely to be completed by the end of this month.
SIS said the acquisition will give an entry into the New Zealand market. It will enable expansion of its Australian business operations into New Zealand.
Delhi-based SIS had ventured into Australia in 2008 with the purchase of MSS Security from Chubb Security Australia Pty. Ltd.
Auckland-based Platform 4 Group (P4G) provides guard services, patrols and monitoring services, and event services. Its main customers are in manufacturing, construction, hospitality and commercial sectors.
P4G employees around 1,100 people and has nearly 300 customers, according to the release. The company’s revenue was 7.8 million New Zealand dollars for the financial year 2018, up from 5.4 million the previous year.
SIS was set up in Patna in 1985 and made its stock market debut in 2017. The company has made a number of acquisitions across its three verticals — security services, cash logistics and facility management.
In 2018, SIS group managing director Rituraj Sinha had told VCCircle that the company had a war chest of Rs 1,000 crore for M&As across segments.
Last month, SIS agreed to buy a 60% stake each in Singapore-based Henderson Security Services Pte. Ltd and Henderson Technologies Pte. Ltd for about $31.8 million. In December last year, it agreed to buy a 51% stake in Bengaluru-based Uniq Detective and Security Services for about Rs 51 crore.
In October, SIS agreed to acquire an 80% stake in Mumbai-based facility management services provider Rare Hospitality and Services Pvt. Ltd for Rs 50.4 crore. It would acquire the remaining 20% stake in 2020.
SIS competes with the likes of Tops Security Ltd and G4S in the security services segment. In the facility management, cash logistics and similar segments, it competes with the likes of Quess Corp and Tenon Group.