Private equity (PE) fund Multiples Alternate Asset Management has bought a controlling stake in human resources (HR) outsourcing and tech firm PeopleStrong HR Services Pvt. Ltd through a combination of primary and secondary investments, the firm said on Monday.
Pankaj Bansal, co-founder and chief executive officer (CEO) of PeopleStrong, said the fresh funds will be used for product development in HR technology and acquisitions of mid-sized firms in payroll and HR technology space in Asia.
Financial details of the transaction weren’t made public, but a person aware of the development said Multiples bought the controlling stake for Rs400 crore. Mint was the first to report on 8 February that Multiples was in talks to buy a controlling stake in PeopleStrong.
“Following the transaction, PeopleStrong management and staff will hold a 25% stake in the firm and the rest will be controlled by Multiples and HDFC Holdings Ltd, which invested in the HR firm in 2013,” the person quoted above said.
The deal was managed by investment banker Lincoln International Advisors India.
“HR is the single most differentiator to create value in any enterprise and as such occupies a central place in the minds of CXOs. We are excited to back PeopleStrong’s top quality management team focused on bringing leading edge technology solutions to address this space effectively,” Renuka Ramnath, founder, and CEO, Multiples, said in the note.
Source: Mint