In a significant move that marks a new chapter in India’s regulatory and social compliance landscape, Allsec Technologies Ltd, a leader in payroll services, has entered into a Business Transfer Agreement for the sale of its Labour Law Compliance (LLC) Business to Aparajitha Corporate Services Private Limited. The deal, valued at an enterprise value of INR 27 Crores, is expected to be completed by March 31, 2024, subject to customary closing adjustments and fulfillment of conditions outlined in the transaction document.

Naozer Dalal, CEO of Allsec Technologies Ltd, emphasized that the transaction is a strategic step towards simplifying the company’s operating structure. It aims to sharpen management focus on higher margin growth areas, such as Customer Experience Management (CXM) and Employee Experience Management (EXM). This divestiture is part of Allsec’s broader strategy to optimize future business results and continue its commitment to providing excellent services to its clients. Allsec looks forward to a seamless transition for its customers, many of whom will remain associated with the company through other services.

Nagaraj Krishnan, Managing Director of Aparajitha Corporate Services Pvt Ltd, highlighted the acquisition’s significance in strengthening their portfolio of comprehensive regulatory and social compliance solutions. Aparajitha aims to consolidate its leadership position in compliance services by integrating Allsec’s LLC business, which is known for its best-in-class services, digital tools, and domain expertise. The transaction will provide a larger platform for professional growth for all team members, fostering an environment that is both expertise-led and technology-enabled.

For Allsec, the sale of the LLC business aligns with the company’s strategy to exit from segments not directly related to its core EXM business. This move allows Allsec to concentrate resources and focus on areas with higher growth potential and margins. For Aparajitha, acquiring Allsec’s LLC business represents an opportunity to expand its service offerings and solidify its position as a leader in the compliance services sector in India.

This strategic divestiture is poised to redefine the compliance solutions space in India, benefiting both companies and setting new standards in the industry. As Allsec and Aparajitha move forward, the focus will remain on delivering exceptional service experiences to clients and fostering innovation in their respective domains.

  Allsec Technologies, Aparajitha Corporate Services, Nagaraj Krishnan, Naozer Dalal