IKYA Group Acquires Industrial Asset Management Firm Hofincons [DealCurry (India)]
(DealCurry (India) Via Acquire Media NewsEdge) IKYA Group, the HR services arm of BSE listed Thomas Cook (India) Limited is acquiring Chennai based industrial asset management company Hofincons Infotech and Industrial Services from Transfield Services Australia.
The company did not disclose the value of the transaction however reports peg the deal size to be between INR75 Mn to a billion.
The buy further strengthens IKYA's presence in the business service space whereas for Hofincons it provides a strong financial backing from IKYA's main parent Fairax Financial Holding.
Hofincons was founded in 1978 as a maintenance & materials consulting and training company then under the name of Howard Finley Consultants (India) Pvt. Ltd. A decade later the company added contract maintenance services to its portfolio and in 1995 Hofincons Industrial Services Ltd (HISL) and Hofinsoft Services Ltd (HSL) were formed. HISL focused on consulting and field asset management services while HSL focused on asset management software development and a range of IT services for its clients.
In 1996 HSIL raised funding from @ICICI_Venture Limited and then in 1997 HSL secured investment from the same investor. Three years down the line both the ICICI ventures portfolio companies were merged to form Hofincons Infotech and Industrial Services Pvt. Ltd for providing industrial asset management services in IT-enabled consulting, operation & maintenance and training.
Then in 2006, Australia's Transfield services acquired the company for $9 Mn. The company whose interest today spans across electrical, mechanical and instrumentation services as well as facilities management, had revenues of INR1500 Mn in FY14 serving clients like Grasim, Reliance Industries, Coca-Cola and PepsiCo.
@Ikya_Human Private Limited, led by Ajit Issac was acquired by Thomas Cook, promoted by Prem Watsa-controlled Fairfax Financial Holdings through its wholly-owned subsidiary, Fairbridge Capital, last year opening a new segment for the travel and travel related financial services firm at a valuation INR2560 Mn (for 74% stake). The transaction provided India Equity Partners an exit that had invested $8 Mn (circa INR 320 Mn) in 2008 in IKYA.
With 75000 employees and operations spread across 22 cities in India, Middle East and SE Asia IKYA group engages itself In segments like asset management, IT services and HR services and has closed its books with a topline of INR 14 Bn for the last fiscal boosted through various earlier acquisitions which include Hyderabad-based tech staffing firm Magna Infotech for INR 1 Bn in 2010, Delhi-based recruitment firm Coachieve in 2009.
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