BLS E-Services Limited (BLSE) has finalized a Share Purchase Agreement (SPA) to acquire a 55% controlling interest in Aadifidelis Solutions Pvt. Ltd. (ASPL), including its affiliates.

The deal, worth approximately Rs. 190 Crores, is structured as an all-cash transaction and is set to conclude in Q2 FY 2025.

BLSE will make an upfront investment of about Rs. 71 Crores, with the balance consideration deferred and linked to ASPL’s performance milestones in FY2025.

ASPL, a major entity in India’s loan distribution and processing sector, works with a network of over 8,600 channel partners across 17 states and union territories. It is currently responsible for facilitating an average monthly loan disbursement of Rs. 1,500+ crores.

BLS E-Services Limited’s strategic acquisition of a majority stake in Aadifidelis Solutions Pvt. Ltd. (ASPL) marks a significant expansion in its portfolio of financial services. This move aims to leverage ASPL’s robust Pan-India network and integrate it with BLSE’s existing infrastructure of Business Correspondents-led banking services, enhancing their distribution capabilities across the country.

ASPL’s impressive performance includes a strong partnership network with top financial institutions like ICICI Bank, HDFC Bank, Axis Bank, Bajaj Finance, and TATA Capital. Their asset-light, commission-based business model has proven to be both effective and profitable, with unaudited financials for FY2024 showing a revenue of approximately Rs. 577 crores and an EBITDA of about Rs. 22 crores.

The operational synergies from this acquisition are expected to generate substantial cross-selling opportunities and broaden the customer base for both entities. Shikhar Aggarwal, Chairman of BLS E-Services Ltd., emphasized the strategic nature of this acquisition, highlighting the potential for enhanced service offerings and expanded market reach that it brings.

The transaction was facilitated by Lagrange Point Advisors LLP, which served as the sole financial advisor, and Dua Associates, which provided legal counsel. This partnership underscores a shared vision for growth and innovation in the financial services sector, promising to elevate BLSE’s position as a leader in the market.

This acquisition not only signifies a substantial step forward in BLS E-Services Ltd.’s strategy to diversify and intensify its operations but also sets a precedent for future corporate mergers and acquisitions within the financial services industry in India.

The acquisition of Aadifidelis Solutions by BLS E-Services is a well-calculated move, aligning with the current trends in financial services where companies seek to consolidate resources and capitalize on existing networks for greater market penetration. This deal not only enhances BLSE’s operational capabilities but also solidifies its market position by integrating a well-established loan processing framework into its array of services. Given the structured payment and performance-based milestones, this acquisition is poised for financial success and operational efficiency, setting a benchmark in the industry.

  Aadifidelis Solutions, BLS E-Services, corporate banking expansion, enterprise value, Financial Services Merger, India loan distribution, strategic investments in finance