Mumbai: Facilities management provider Updater Services Pvt. Ltd (UDS) has bought a 75% stake in Matrix Business Services, which operates in the business assurance and background verification segment, UDS said on Wednesday.
It has purchased the entire 19.77% stake of Kotak Mahindra Investments, 2.67% of Mahindra and Mahindra Contech, and 52.56% from other shareholders, primarily non-executive shareholders.
The acquisition will help UDS expand its service offerings, as it currently manages 250 million sq. ft. of commercial space across India for about 700 clients with a workforce of over 46,000 employees.
UDS currently provides services across industries, such as airports and highways, manufacturing, hospitality and education, and helps with vendor and helpdesk management, payroll services, and housekeeping, among others.
Raghunandana Tangirala, founder and managing director, UDS, said: “We see this acquisition as a move towards expanding and strengthening UDS’ comprehensive portfolio in business services. Matrix has emerged as the clear leader in the fast-growing and fragmented business assurance industry in the country, and we are thrilled to partner with the organisation as we invest in Matrix’s next chapter of growth." UDS last raised funds in February 2017, when Motilal Oswal Private Equity (MOPE) invested ₹100 crore ($15 million) in the company for a minority stake. Earlier, it had raised funds in 2004 and 2008 from New Vernon Private Equity and ICICI Venture.
P.C. Balasubramanian, managing director and chief executive officer of Matrix, who will continue to spearhead the business for Matrix, said: “We are delighted to become a part of the UDS team. We are a strong and growing force in India and, with UDS behind us, we will develop and grow our business at a much faster rate with the benefit of its expertise, national network, resources and technology."
Chennai-based Matrix currently provides employee background verification, audit and assurance for products, from sourcing raw material from different suppliers to reach the finished product to retail outlets, and building efficiency in the processing and settlement of claims.