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
Related opportunities
  • Real Estate
    About Us: Co-offiz is an office for all young professionals, start-ups,..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 3000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Others Food Service
    About Us: Launched in 2015, YoMama is a chain of cafes..
    Locations looking for expansion Karnataka
    Establishment year 2015
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 350
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • Fine Dine Restaurants
    About Us:  Meal O Drama is an award-winning modern bistro in..
    Locations looking for expansion New Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Delhi New Delhi
  • Bars, Pubs & Lounge
    About Us: TJ's Brew Works is a microbrewery, with freshly brewed..
    Locations looking for expansion Delhi
    Establishment year 2012
    Franchising Launch Date 2018
    Investment size Rs. 2 Cr. - 5 Cr
    Space required 2000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
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