BLS International acquires Turkey-based visa services provider iData for ₹720 crore; stock up 6%

The BLS International Services stock surged as much as 5.97% in the opening trade on Wednesday, July 10, after the announcement to hit an intraday high of ₹400 apiece on the NSE. However, it could not sustain the momentum and erased most of its gains to trade 1.32% lower at ₹372.45 apiece by 1:30 pm.

In a filing to the stock exchanges on Tuesday, the company said that the acquisition has been done through BLS International Services’ wholly-owned subsidiary BLS International FZE and step-down subsidiary BLS International Holding Anonim Şirketi.

BLS International Services completed the acquisition for a consideration of around ₹720 crore. The company said the deal would be funded through internal accruals and debt. According to the exchange filing, the transaction will be earning per share (EPS) accretive to BLS immediately from July 9, 2024.

The company said that this acquisition would further strengthen its position as a leading international player in visa and consular services.

“iDATA’s existing agreements and offices will be aligned into the BLS’s network in 66 countries across the globe, enabling BLS to service more client governments in Europe where iDATA is a dominant player,” the company said in a press release.

Commenting on the acquisition, BLS International Services joint managing director Shikhar Aggarwal said, “We anticipate this strategic move to contribute positively to our financial performance and improve our margins noticeably, on the back of the combined synergies of both the companies.”

iDATA is a Turkey-based player providing comprehensive visa processing and consular services to various governments, through its more than 37 visa application centres in over 15 countries, serving diplomatic missions of Germany, Italy, and Czech Republic.

iDATA had achieved consolidated revenue of around ₹246 crore and an Ebitda (earnings before interest, tax, depreciation and amortisation) of roughly ₹144 crore in calendar year 2023.