Topsgrup is now all set to buy the UK-based company and has stroked Rs.200-crore deal for it. It has already short-listed two British companies engaged in security services. Both the companies have a turnover about Rs.500-crore and a deal is on the cards.

Topsgrup is ranked as the second-largest security services company in India. It is said that the British Company is demanding for a valuation of about 57% of the turnover.

However, Topsgrup intends to cut down the acquisition cost to a more reasonable one considering that profit margin in the British Company is lower than Topsgrup. The negotiations are being made by Mape Advisory.

The acquisition is expected to be financed through a 1:1 debt equity formula. Out of this, the equity portion will be derived from private placement of about 15% equity of Topsgrup. A total valuation of around Rs.700crore is the main focus of attention considered by the Topsgrup.

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