BLS International Services (BLS), a renowned provider of global technology-enabled services for governments and citizens, has recently announced a significant strategic move. Through its subsidiary, BLS International FZE in the UAE, it has entered into a definitive Share Purchase Agreement to acquire the entirety of iData Danismanlik Ve Hizmet Dis Ticaret Anonim Sirketi (iDATA) and its subsidiaries. 

With a valuation of 50 million Euros (approximately INR 450 crores), plus additional payments contingent on meeting certain milestones, this acquisition is poised to significantly enhance BLS's capabilities and reach in the domain of visa and consular services worldwide.

iDATA, based in Turkiye, has established itself as a critical player in the field, offering various visa and consular services. It operates over 37 Visa Application Centres (VACs) spread across more than 15 countries. The company's client portfolio includes the diplomatic missions of Germany, Italy, and the Czech Republic, with notable long-standing relationships. For instance, since 2006, iDATA has been the exclusive service provider for Italy's diplomatic missions and the German government in certain regions since 2012. 

iDATA's Contributions and Performance

In the fiscal year 2022, iDATA's financial performance was impressive, reporting revenues of 19.9 million Euros (about INR 180 crores) and an EBITDA of 10.4 million Euros (approximately INR 94 crores).

The funding for this acquisition primarily comes from BLS's internal accruals. The transaction will be finalised within the current financial year, pending necessary government and regulatory approvals. Professional advisement for this acquisition was provided by PwC in Turkiye and Lagrange Point Advisors LLP in Mumbai, with legal counsel from Dentons Link Legal in India and Balcioğlu Selçuk Ardiyok Keki Attorney Partnership (BASEAK) in Turkiye.

Strategic Implications and Future Prospects

Shikhar Aggarwal, the Joint Managing Director of BLS International Services, expressed his enthusiasm about this acquisition. He highlighted that the acquisition of iDATA and its subsidiaries marks a significant milestone in the growth trajectory of BLS International. He emphasised that this strategic decision aligns with their goal to become a global leader in tech-enabled services for governments and citizens. 

Aggarwal also pointed out that this expansion not only enlarges their operational footprint but also underscores their commitment to building long-lasting partnerships with governments. He concluded by expressing eagerness to complete the transaction, which he believes will further demonstrate BLS International's core values of reliability, transparency, and efficiency and will support the critical functions of governments worldwide.

FAQs

What is the significance of BLS's acquisition of iDATA?

The acquisition enhances BLS's visa and consular services capabilities, expands its global presence, and aligns with its goal of becoming a leader in government tech services.

How does iDATA complement BLS International?

iDATA brings a strong network of Visa Application Centres and a solid client portfolio, enhancing BLS's service offerings and operational footprint in the visa and consular domain.

What are the prospects of this acquisition?

Integrating iDATA is expected to enhance service quality, operational efficiency, and a more substantial global presence for BLS in the tech-enabled services sector.