Security and Intelligence Services to buy 60% in Henderson for Singapore entry

Security and Intelligence Services (India) Ltd has agreed to buy a 60% stake each in Singapore-based Henderson Security Services Pte. Ltd and Henderson Technologies Pte. Ltd for 43 million Singapore dollars (Rs 226 crore) in cash. The buy will help Delhi-based Security and Intelligence Services enter Singapore and expand its presence in the Asia-Pacific region.

Security and Intelligence Services would buy the remaining 40% stake in each of the firms between October 2020 and April 2024, the company said in a stock-exchange disclosure.

Giving details, Mr Rituraj Sinha, MD of SIS said that acquiring the company was a valuable asset for SIS India because Henderson was the fastest growing company in Singapore.He also disclosed that with this, SIS India which will be a billion dollar company in the coming financial year, has taken its place amongst the top ten companies globally. And in this prestigious group, it is the fastest growing company.

The Henderson Group provides manned guarding services and builds mechanical and electrical services including electronic security services. It has over 1,500 employees across more than 200 sites. Its clients include residential condominiums, commercial spaces, government and public transport. For the financial year 2016-17, the revenue of Henderson Security Services was 51.9 million Singapore dollars as against 48.7 million Singapore dollars the previous year. Henderson Technologies revenue stood at 6.1 million Singapore dollars, up from 3.5 million Singapore dollars, during the period.

Last month, Security and Intelligence Services agreed to buy a 51% stake in Bengaluru-based Uniq Detective and Security Services for Rs 51 crore. However, the final deal value will be calculated based on the Ebitda (earnings before interest, tax, depreciation and amortisation) for financial year 2018-19. In October last year, Security and Intelligence Services entered into an agreement to acquire 80% stake in Mumbai-based facility management services provider Rare Hospitality and Services Pvt. Ltd. for Rs 50.4 crore. Security and Intelligence Services would acquire the remaining 20% stake in 2020.