Renrui Human Resources Technology (6919: HKG), a mainland China-based flexible staffing service, announced that its subsidiary Shanghai Ruiying Human Resources Technology Group will acquire a 46.0% stake in Shanghai Sirui Information Technology Co., Ltd.

The conditional agreement of the sale for the 46% stake will be for a total consideration of RMB 408.0 million (USD 64.6 million.)

Shanghai Sirui was established in China on 7 November 2013. The group is an information technology and software outsourcing service provider ‘committed to providing digital transformation and information technology services to customers.’

Shanghai Sirui has provided professional information technology and software outsourcing services to over 160 customers across China with business coverage in over 80 cities and about 3,800 software development and technical service personnel.

Upon completion of the acquisition, the purchaser, Shanghai Ruiyan HR Technology, will be entitled to appoint a majority of the board of directors for Shanghai Sirui.

Shanghai Ruiyan HR Technology will be able to direct Shanghai Sirui’s relevant activities as it will become a non-wholly owned subsidiary of the company and Shanghai Sirui’s financial results will be consolidated into the group’s financial statements.

According to Renrui, the deal will ‘strengthen the business layout and implement strategic upgrade of the group in light of the prospects of the information technology and software outsourcing services industry, with a large market size and a relatively high gross profit margin’.

On September 2021, Renrui announced that it agreed to acquire two China-based staffing providers, Jiangnan Finance Technology (Changzhou) Co. Ltd. and Shanghai Lingshi Human Resources Services Ltd.