New Delhi: CL Educate on Thursday said it has acquired two entities—Pearson group’s ETEN and Accendere Knowledge Management Services (AKMS). An education and knowledge services provider, CL Educate recently got listed on the stock exchanges.
ETEN is the test preparation business division of Pearson’s IndiaCan Education Pvt Ltd.
It provides tech-based satellite coaching for chartered accountant programme and civil services. AKMS is a knowledge management company, specialising in areas such as incubating research programmes for universities.
After ETEN buyout, CL Educate said its network would expand to 192 centres with five high-tech broadcast studios reaching around 93,000 students.
According to a release, the ETEN deal involves a staggered payment of Rs6 crore over 30 months and 4% revenue share for the next three years.
“ETEN adds a large knowledge-based test-prep segment of CA and strengthens civil services for CL Educate in test preparation business,” CL Educate vice chairman and managing director Gautam Puri said.
The acquisition would help increase profitability as it can help in reducing delivery costs. Without disclosing financial details, CL Educate in another release said it has completely acquired AKMS.
In 2015, CL Educate had purchased 51% stake in the company with a call option for the remaining shareholding to be exercised on or after 1 April 2017.