Thomas Cook (India) Limited announces the acquisition of a 74% stake in IKYA Human Capital Solutions, India’s leading HR Solutions Company
Mumbai February 5, 2013: Thomas Cook (India) Ltd, one of the largest integrated travel services companies in the country, announced that it has signed an investment agreement to acquire a 74% interest in IKYA Human Capital Solutions (Ikya), India‟s leading human resources staffing solutions
company for consideration of Rs 256 crores (approximately US$47 million). The transaction remains subject to customary closing conditions and regulatory approvals as required.
Ikya offers specialized human resources services including search, recruitment, project based hiring, general and professional staffing, skill development, and facilities management to over 500 leading Indian corporate clients through 32 offices, with 1,400 team members and over 54,000 associates. By virtue of this investment, TCIL broadens its portfolio of service-related businesses with an entry into one of the world‟s largest human resource markets.
Thomas Cook (India) Ltd‟s controlling shareholder, Fairfax Financial Holdings, and its affiliate, Fairbridge Capital, both actively assisted in discussions around the acquisition of Ikya. A Fairfax affiliate, Fairbridge Capital (Mauritius) is also a party to the investment agreement.
Speaking on the Ikya acquisition Mr. Madhavan Menon, Managing Director, Thomas Cook (India) Ltd said, “As one of the largest integrated travel services companies in the country, it is our strategy to invest in partnerships that broaden our business services platform to increase shareholder value. Ikya’s wide range of HR services and sterling reputation, offer us a wonderful opportunity to extend the bouquet of travel, financial and HR services we offer to corporates across India.”
He added “Post the acquisition, IKYA would remain a standalone independently managed entity supervised by Thomas Cook (India) Ltd, with the assistance of Fairbridge, and we are confident that their management team headed by Mr. Ajit Isaac will continue to grow its business for the benefit of all stakeholders.”
Ikya‟s CEO Mr. Ajit Isaac added “Ikya Human Capital Solutions was born with a vision to be the leading player in the Human Capital industry across the emerging global markets by creating a positive impact on the lives of its employees, candidates and clients. We have, in our short history since 2007, built a solid reputation with over 500 clients and partners to become India’s fastest growing HR solutions company. This strategic partnership with Thomas Cook (India) Ltd and in turn their promoters at Fairfax Financial,offers Ikya a platform to enable us to realise this vision sooner”
In response to the announcement, Mr. Prem Watsa, Founder, Chairman & CEO of Toronto-based Fairfax Financial said “We believe the acquisition of Ikya will be a great addition to the Thomas Cook (India) Ltd business. Ajit Isaac, Ikya CEO, and the entire Ikya team share very similar values with the Fairfax Group. This combination embodies our investment philosophy of long-term value creation through a strategy of friendly acquisitions of cash flow generative businesses at fair valuations.”