Aptech to buy animation, education biz of MAAC

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Aptech to buy animation, education biz of MAAC

In an interview with CNBC-TV18, Ninad Karpe, Chief Executive Officer and Managing Director of Aptech, spoke about its acquisition with Maya Entertainment Limited, which is branded as Maya Academy of Advanced Cinematics (MAAC).

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Aptech to acquire Maya Ent's animation education biz ALSO READ See latest News about Aptech See previous management interviews See what other Experts & Brokerages are saying about Aptech Aptech BSE | NSE 10/02/12 Are Mutual Funds betting on Aptech?

In an interview with CNBC-TV18, Ninad Karpe, Chief Executive Officer and Managing Director of Aptech , spoke about its acquisition with Maya Entertainment Limited, which is branded as Maya Academy of Advanced Cinematics (MAAC). 

Here is a verbatim transcript of an exclusive interview with Ninad Karpe on CNBC-TV18. Also watch the accompanying video.

Q: What is Maya Entertainment? What is the total consideration? You are issuing 22.5 lakh shares of Aptech. What is the total cash plus equity payout for Maya?

A: Maya's brand name is MAAC which is in the animation education business. They have animation education as well as studio business. We are going to take only the animation education business. We are already in the same business with our brand called Arena, which his a leading brand. So we will be taking over the education business of Maya which is branded as MAAC.

Q: The consideration aside of the 22.5 lakh shares?

A: The total enterprise valuation is at Rs 76 crore part cash, part equity. The details of the deal are being finally inked out but the total enterprise value is taken at approximately Rs 76 crore.

Q: Could you share some details on the kind of sales, run rate and whether or not this company is currently profitable?

A: MAAC has got approximately 70 centres across India. At Arena we are close to 150 centres. It's a profitable business. March ending 2009, their system wise revenue was Rs 125 crore and EBITDA was Rs 13 crore. For the current year which is 2010, there is a flattish growth and we will have to wait and see how it pans out but these are audited numbers of March 2009.

Q: Acquisition seems quite cheap, Rs 76 crore for a company that is making revenues of Rs 125 crore?

A: That is a system wise booking and EBITDA number is Rs 13 crore. EBITDA is a number we need to focus on. Last year, they made Rs 13 crore and this year it will not be Rs 13 crore. There is flat to slight downward trend but we will wait and see how it pans out.

More than the valuation, it's strategic to Aptech. It's a step in the direction to become truly good education power house. This will add to our existing strength and various brands which we have on the retail side.