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Updater Services Private Ltd (UDS) on Wednesday announced the acquisition of majority stake in Matrix Business Services (MBS), which is engaged in business assurance and background verification services, for an undisclosed sum, in a move aimed at expanding its business services.
Chennai-headquartered UDS has bought 75 per cent stake in MBS and the acquisition includes buying out the entire 19.77 per cent stake of Kotak Mahindra Investments and 2.67 per cent of Mahindra & Mahindra Contech and the balance 52.56 per cent from other shareholders, mainly from all the non-executive shareholders.
The acquisition of Matrix will expand UDS’ broad range of business services even further and position the company as a complete business services group in the country.
“We have been keen expanding our portfolio and the idea is to build a range of business services under one platform. Last year also we made an acquisition. Now, this one. Matrix will remain as an independent entity as we don’t have any plan to merge it with UDS. MBS’ promoters still hold 25 per cent in that company,” Raghunandana Tangirala, Founder and Managing Director of UDS, told BusinessLine .
Matrix, a 13-year-old Chennai-based company, has emerged the clear leader in the fast growing and fragmented business assurance industry, he added.
“We are a strong and a growing force in India and, with UDS behind us, we will develop and grow our business at a much faster rate with the benefit of its expertise, national network, resources and technology,” said PC Balasubramanian, MD and CEO of Matrix, who will continue to spearhead the business for Matrix.
Founded in 1985 and was the first to introduce facility management services in the country, UDS has grown to a leading business services specialist managing 250 million sq. ft commercial space across India for about 700 clients with a workforce of more than 46,000 permanent employees.
“In 2018-19, we clocked a turnover of about ₹1,000 crore on a standalone basis. For the current fiscal, we are targeting ₹1,200 crore on a standalone basis and about ₹1,500 crore on a consolidated basis,” said Tangirala.
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