Quess Corp acquires the residual 30% stake in Conneqt
Mumbai: Quess Corp, India’s leading business services platform announced the acquisition of 30% stake in Conneqt Business Solutions Ltd (Conneqt) for INR 208 Cr, pursuant to the Put Option notice by Tata Sons Pvt. Ltd. (Tata). With this transaction, Conneqt will become a wholly owned subsidiary of Quess.
Conneqt, is a leading CLM and BPM services provider in India and operates 21+ delivery centers with 29,000+ employees. Quess had acquired 51% of Conneqt in November 2017 and further increased its stake in Conneqt from 51% to 70% in May 2019 via infusion of primary capital, which was used to fund the acquisition of Allsec Technologies Limited (“Allsec”) a listed CLM and HRO services provider.
Conneqt has performed exceedingly well during this period achieving a pre-COVID revenue CAGR of around 15%, growing NPS from 14% to 45%, and reducing concentration from its top 10 customers, from 74% to 59% of revenues.
The combined strength of Conneqt and Allsec provides Quess a substantial base to expand its CLM and BPM capabilities with greater emphasis on digital services and international expansion. Full ownership of Conneqt will enable Quess to optimally realize synergies between various divisions of Quess, Conneqt and Allsec, accelerating its growth in the IT/ITES space.
Mr. Suraj Moraje, Group CEO and Managing Director of Quess Corp, said, “Conneqt has performed remarkably since we acquired it in 2017, with significant milestones achieved in terms of robust revenue CAGR, NPS improvement and reduction of top 10 customer exposure. The consolidation of our holding in Conneqt is an affirmation of our continued commitment to Conneqt, its employees and customers. This will further accelerate Conneqt’s transition to non-voice services as the business benefits from the triple tailwinds of virtualization, digitization, and automation while providing more opportunities to realize synergies with Quess. We thank the Tata Group for the fruitful and enjoyable partnership to date.”