SIS Limited , a leading security services provider, has announced a significant move to consolidate its market position by acquiring a 51% stake in A P Securitas Private Limited (APS), a well-established security services company with over 40 years of experience in the industry. This strategic acquisition is set to bolster SIS's presence in key sectors and expand its client base across India.

Transaction Details

The initial transaction values the first tranche at approximately 8.3 times EBITDA multiple, with SIS paying INR 73.40 crore for the 51% stake. The remaining 49% is scheduled to be acquired over the next 3-4 years through a performance-linked structure, incentivizing growth and improved margins.

A P Securitas: A Snapshot

A P Securitas is a pan-India security services company with:

• Annual revenue exceeding INR 1,000.00 crore
• Approximately 40,000 employees
• Primary focus on private sector clients
• 34% revenue from the BFSI (Banking, Financial Services, and Insurance) sector
• Presence in logistics, IT outsourcing, and education sectors
• 4.30% EBITDA margins and 2.27% PAT margins
• Net debt of INR 100.00 crore
• Net worth of INR 86.00 crore

Strategic Implications

Post-acquisition, SIS's combined security business will have a monthly revenue run rate of approximately INR 600.00 crore, making it nearly twice the size of its nearest competitor. This move aligns with SIS's Vision 2030 strategy, which aims to:

1. Move from market leadership to increased market share
2. Shift from services towards integrated security solutions

Operational Strategy

SIS plans to operate APS as an independent entity for at least the next three years, retaining the current management team. This approach is designed to ensure continuity and leverage APS's existing strengths while working towards synergies and operational efficiencies.

Financial Impact

The acquisition is funded through internal accruals, maintaining SIS's net debt-to-EBITDA ratio below 1x. The deal is expected to be accretive, with SIS projecting an ex-IRR of over 21% in a base case scenario.

Market Positioning

With this acquisition, SIS strengthens its position in key sectors such as BFSI and logistics. The combined entity will offer an integrated model of man-guarding and electronic services solutions, focusing on a solution-selling approach that aligns with evolving market demands.

Future Outlook

SIS expects to begin consolidating APS's financials from Q3 of the current fiscal year. The company aims to leverage this acquisition to enhance its market share, expand its service offerings, and drive growth in line with its long-term strategic objectives.

Rituraj Sinha, Group Managing Director of SIS, commented on the acquisition: "This deal fits well with our strategy. It is funded internally, does not put the company's balance sheet under pressure, and will help us move forward towards our Vision 2030 objectives."

As the security services landscape continues to evolve, this strategic move positions SIS to capitalize on emerging opportunities and reinforce its leadership in the Indian security services market.

Note: All financial figures are in INR crore unless otherwise stated.

SIS Limited , a leading provider of security, facility management, and cash management solutions, has announced a significant move to strengthen its position in the Indian security services market. The company's Board of Directors has approved the acquisition of 100% shareholding in A P Securitas Private Limited through a strategic two-tranche deal.

Acquisition Details

The first tranche of the acquisition involves SIS Limited purchasing a 51% stake in A P Securitas for an interim consideration of INR 73.40 crores. This initial transaction is subject to net debt and working capital adjustments and is expected to be completed by November 1, 2025. The remaining shares will be acquired by 2029, culminating in full ownership of A P Securitas by SIS Limited.

About A P Securitas

A P Securitas, incorporated in 1986, is a well-established player in the security and facility management services sector. The company operates through its subsidiaries, Proton Facility Solutions (PFS) and Scientific Security Management Services (SSMS), offering a comprehensive range of services including:

• Guarding services
• Event security management
• Housekeeping and facilities management
• Security surveillance services

With a robust presence across various sectors such as banking, logistics, third-party outsourcing, and education, A P Securitas serves over 1,000 clients and employs more than 37,500 people.

Financial Performance

A P Securitas has demonstrated strong financial growth over the past few years:

The unaudited revenue for FY25 stands at INR 1,119.00 crores, showcasing the company's significant market presence and growth trajectory.

Strategic Rationale

SIS Limited's decision to acquire A P Securitas aligns with its strategy to increase its market share in India's security services industry. This acquisition is expected to enhance SIS Limited's service offerings and expand its client base across various sectors.

Investor Conference Call

To provide more details on this strategic transaction, SIS Limited has scheduled an investor conference call on September 8, 2025, at 2:00 p.m. IST. The call will feature key executives including Mr. Rituraj Kishore Sinha (Group Managing Director), Mr. Brajesh Kumar (Chief Financial Officer - SIS India), and Mr. Vineet Toshniwal (President - M&A and IR).

This acquisition marks a significant step for SIS Limited in consolidating its position in the Indian security services market. As the company moves forward with this strategic expansion, industry observers will be keenly watching the integration process and the potential synergies that may arise from this transaction.