Quess Corp (QUESS) has announced the acquisition of Allsec Technologies 18 April 2019 under its BPO vertical, that will improve the profitability and cash generation profile of its Conneqt BPO business. Allsec is focused on Customer Life cycle management (~75%) and HR Operations (~25%). The acquisition will add ~3,500 seats and ~3,300-3,400 associates and revenue of ~INR2.3b (annualized). Quess has signed a definitive agreement to buy a total of 61.35% stake in Allsec Technologies. This would imply one-year forward EV/EBITDA multiple of ~5.8x (based on our expectation of ~15% growth). The EV/EBITDA of peers such as FSOL, Genpact and WNS ranges between 7x-13x for FY20E. If the company is able to acquire 26% additional shares through an open offer, the total consideration will amount to INR3.98b. Customer Lifecycle Management (CLM), [2] HR Outsourcing and Payroll (HRO) and [3] Anti-Money Laundering. As on date, the company has divested from the anti-money laundering vertical.