Industry

UDS buys 75% stake in Matrix

Raghunandana Tangirala  

City-based UDS (Updater Services Private Limited ), a facilities management services firm, has acquired a 75% stake in Matrix Business Services, another city-based firm which is operating in the business assurance and background verification services space.

UDS gained entry into Matrix by buying out the entire 19.77% stake of Kotak Mahindra Investments and 2.67% of Mahindra & Mahindra Contech. It acquired the balance 52.56% from non-executive shareholders.

The acquisition, it is believed, values Matrix a little over ₹50 crore. Veda Corporate Advisors acted as the financial adviser to the deal.

Following the deal, UDS gets to nominate three representatives on the five-member board of Matrix.

The induction of UDS as strategic investor has given the two long-time investors — Kotak Mahindra Investments and M&M Cotech — an exit option. “The acquisition of Matrix will help UDS expand its service range and position it as a complete business services group,” said Raghunandana Tangirala, founder and managing director of UDS.

Founded in 1985, UDS has grown to a leading business services specialist, managing 250 million sq ft commercial space across India for about 700 clients with more than 46,000 permanent employees.

The new owners have made it clear that the existing management would continue at Matrix. P.C. Balasubramanian, MD and CEO of Matrix, felt that the entry of UDS would bring about a host of synergies in terms of business offerings and clients.

Matrix is currently servicing more than 350 customers with over 1,000 employees spread across 70 cities. UDS has a revenue base of around ₹1,000 crore, according to Mr. Tangirala.

The revenue of Matrix at the end of March 2018 stood at about ₹57 crore.

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Printable version | Mar 1, 2021 7:04:33 AM | https://www.thehindu.com/business/Industry/uds-buys-75-stake-in-matrix/article27005089.ece

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