Hotline: 1800 102 2007
X
Search Business Opportunities
May, 02 2018

Ebix To Buy Majority Stake In SmartClass Educational

The Smartclass Educational deal is strategic because it has a strong sales and distribution team of over 500 people, something that will be valuable for EBIX as it moves forward in its acquisition of Educomp.

US-based $2.5 billion corporation Ebix, which is listed on NASDAQ, has announced the acquisition of majority stake in SmartClass Educational, a leader in the digital education market for K-12 education.

Having already deployed $300 million to acquire several payments, forex, remittance and travel companies, Ebix is now close to its 11th acquisition in India in less than a year.

It may be recalled Ebix recently emerged as the highest bidder for Educomp Solutions Limited. Lenders of Educomp have reportedly cleared the proposal, which is now awaiting NCLT approval.

Once acquired, Ebix will deploy over $60 million to turn around the large online education player which acquired an enviable reputation for sparking off the digital education revolution in India.

The Smartclass Educational deal is strategic because it has a strong sales and distribution team of over 500 people, something that will be valuable for EBIX as it moves forward in its acquisition of Educomp. Educomp, it may be recalled, filed for insolvency in May 2017, had practically stopped doing new business for the past two years and had no sales and distribution channel.

Ebix will go head to head with companies such as Byju. Byju is tapping the online education market in India, focused on the large size of the market with over 250 million consumers.

Evidently, investors love this space and as per data visible in the public domain, have reportedly poured over $240 million into the still loss-making Byju, taking Byju's valuation to over $1 billion in its latest funding round.

"It will all depend upon the quality of the educational solution and footprint into schools. The fact is that while Educomp faced debt-related issues, it does have huge goodwill and acquired an early start in the digital classroom market, something an investor with deep pockets can turn around," said a person involved with the negotiations on condition of anonymity.

With Smartclass Educational, Ebix gets a ready-made sales and marketing team that can be used to push other Ebix products into India from its US headquarters.

Robin Raina, CEO of Ebix, recently announced that he expects India to contribute an ambitious $500 million to Ebix global revenues over the next three years. Acquisitions like Smartclass Educational are one such step forward in fulfilling this goal.

Ebix is in early lead with respect to the Indian government’s latest budget proposals of $5 billion outlay for equipping every classroom in government schools with SmartBoards.

Comment
image
Related opportunities
  • Security Services
    About Us: A GPS tracking unit is a device that uses..
    Locations looking for expansion Delhi
    Establishment year 2016
    Franchising Launch Date 2018
    Investment size Rs. 50 K - 2lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Multi Cuisine Restaurant
    About Us: Shaking up the traditional food & drink space with..
    Locations looking for expansion Gujarat
    Establishment year 2004
    Franchising Launch Date 2018
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 3000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ahmedabad Gujarat
  • About Us: Established in 2002, Simply Health Plus is a certified..
    Locations looking for expansion Delhi
    Establishment year 2002
    Franchising Launch Date 2019
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Three wheeler (Auto) showroom
    About Us: Jugnoo started as India’s first Auto-rickshaw Aggregator which is Funded..
    Locations looking for expansion Chandigarh
    Establishment year 2014
    Franchising Launch Date 2018
    Investment size Rs. 2lac - 5lac
    Space required 00
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Chandigarh Chandigarh
Insta-Subscribe to
Entrepreneur
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities