Danish facility services group ISS has added security services to its portfolio in India by acquiring 49 percent in city-based SBD Cisco (India) Ltd for an undisclosed sum.
The Rs 300-crore revenue SDB Cisco is a joint venture between Sicagen India and Certis Cisco of Singapore.
The purchase has been structured in a way that Innovative Salary and Pay Roll Management Pvt Ltd (ISPRM) have bought out the holdings of Sicagen and Certis Cisco.
"ISS holds 49 per cent in that company (ISPRM) and two employee welfare trusts holds the balance 51 percent. The recently formed trusts are funded by promoters of ISS and SDB Cisco to purchase the shares from Sicagen," ISS' Regional Chief Financial Officer (Asia Pacific) Henrik Langebaek told reporters here Monday.
According to him, the SDB Cisco employees trust holds 35 per cent in ISPRM and the ISS employee trust hold the balance.
However, he declined to reveal the purchase price.
"The trusts were formed so that the employees get the benefit when ISPRM declares dividend. The trust is not to circumvent the Indian regulations that stipulates 49 percent maximum holding for a foreign company in an Indian security services company," he added.
The acquisition enables ISS to offer cleaning, catering, pest control and security services.
Asked about the future branding of security services, Langebaek said: "The decision whether the service will be offered under ISS brand or continuing with SDB brand will be taken later."
For ISS, the recent buy is the third large acquisition in India and constitutes the second strategic step change following the takeover of pest control provider Godrej HiCare last April.
With this takeover ISS in India will be 43,000 employee strong as SDB Cisco has around 25,000 people on its rolls.