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Italy-based staffing firm Gi Group has acquired a 49% stake of its joint venture partner Elixir Consulting, an Indian Recruitment Process Outsourcing (RPO) firm making it the 100% owner of the business. Although no metrics have been published, the deal is said to be worth around €1 million (R75-100Cr), according to local reports.
Gi Group, the largest Italian-owned staffing agency, first entered the Indian market in 2009 through the launch of a joint venture with Elixir Consulting. It owned a 51% stake in the joint venture with the rest being owned by Vipul Prakash, the founder of Elixir.
Mr Prakash is said to remain on the board although a new CEO is expected to now join the RPO business.
“When we enter any new market, our strategy is to buy some stake in the company. After few years of business operations and evaluation of future potential, we decide to increase the stake or acquire it [the joint venture] completely. The current deal is a part of the same strategy,” told Davide Riboni, country head of Gi Group in India, The Economic Times.
In an interview with the paper, an anonymous “senior member at Elixir” said that the buyout is not quite complete although the deal had been signed.
Mr Riboni also told the paper that Gi Group is considering more acquisitions in India to strengthen its presence there.
In March, Gi Group reported a +45% increase in annual income for 2011 which reached €1,158 million.
Gi Group is an international group of companies, providing temporary and permanent staffing, as well as search and selection services. The Group is privately owned and has a presence in more than 20 countries across Europe, Asia and America.
Elixir Consulting, founded in 2000, provides services in executive search, RPO, contingent hiring and temporary staffing.