Let's not forget about this from just 10 days ago. Crown Solution has a scheduled January 31 closing (which is a Sunday). The VGR acquisition was to happen Jan. 15. They will likely be collectively announced since Crown will be wholly-owned subsidiaries of VGR.
Xalles To Acquire VGR Technology Partners and Crown Solutions
January 12, 2021 08:00 ET | Source: Xalles Holdings Inc.
Acquisitions Create a Structure for an Accretive Rollup of IT Staffing, Augmentation and Product Development Companies
WASHINGTON, DC, HOUSTON, TX, CHENNAI, INDIA, Jan. 12, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Xalles Holdings Inc. (OTC: XALL), a fintech holding company providing technology and financial services solutions, will acquire VGR Technology Partners Inc. (“VGR”) in a share exchange agreement. In a separate share purchase agreement, Xalles will acquire Crown Solutions India Pvt. Ltd. (based in Chennai, India), Crown Global Solutions Pvt. Ltd. (based in the UK), and Crown Solutions, Inc. (based in the USA), (collectively these three companies are "Crown").
VGR Technology Partners is a management company designed to seek out and perform due diligence on IT staffing, augmentation and product development companies and roll them up under VGR. VGR is led by its President, Venugopal Thiyyagura. Mr. Thiyyagura has managed multiple IT companies and orchestrated a few successful exits. He has been researching target companies for many months and has a large pipeline of profitable companies in discussions and negotiations.
Crown Solutions India, along with its two sister companies in the UK and USA, collectively operate a staffing and shared services organization that is expected to generate approximately $9.5 million USD in revenue in 2021 and approximately $1.8 million in pre-tax profits (EBIDTA). Crown is led by its Director, Suresh Kumar Nair. Mr. Nair has grown Crown into a stable and successful operation since he founded the company in 2002, and he will stay on to lead the company during an extended multi-year transition period.
“The acquisition of VGR Technology Partners has created a new accretive rollup for Xalles in the technology space to support system modernization initiatives in fintech and other vertical markets,” stated Thomas Nash, CEO of Xalles Holdings. He continued, “Aside from the direct financial benefits that Xalles will receive from these acquisitions, Crown Solutions also helps strengthen our shared services capabilities.”
Xalles sees these acquisitions as strategic transactions to allow the company to execute on its mission to create an accretive rollup. VGR is expecting to complete multiple additional acquisitions during 2021, which will dramatically increase the expected revenue and profit of the entire company.
“I plan to build a world class global IT staff augmentation and software development organization for Xalles. I strongly believe that through the correct selected accretive acquisitions and a loyal global workforce, we will create a successful, innovative and profitable firm,” stated Venugopal Thiyyagura, President of VGR Technology Partners.
Since 2002, Crown has been successfully providing services of IT contingent staffing, talent placement & recruitment services and global resourcing services”, commented Suresh Kumar Nair, Director, Crown Solutions India. He added, “I am pleased to be working with VGR and Xalles to expand our global reach and grow the business.”
VGR will become a wholly owned subsidiary of Xalles Technology Inc. upon closing which is expected by January 15, 2021. The 3 Crown companies, with a current strength of more than 900 employees worldwide, will become wholly owned subsidiaries of VGR Technology Partners upon the targeted closing date of January 31, 2021. The Crown purchase agreement has a total value of approximately $6.1 million USD.
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