CL Educate, the parent company of the coaching center Career Launcher, announced on August 29 that its Board of Directors has approved acquisition of the Digital Examination Business (DEX) from NSEIT Limited for an initial cash consideration of Rs 230 crore. The company said it has also made a binding offer to NSEIT Limited for this acquisition.
The acquisition excludes NSEIT Limited's technology business, CL Educated stated. An additional consideration of up to Rs 75 crore will be payable upon achieving certain business milestones.
NSEIT Limited is a wholly-owned subsidiary of NSE Investments Limited and a step-down subsidiary of the National Stock Exchange of India Ltd. The DEX unit of NSEIT, an unlisted public company, has been a key player in the automation and management of online examination processes and digital learning solutions since its incorporation on October 29, 1999. DEX is involved in providing consultancy and technical collaboration services related to the automation of end-to-end online examinations, testing, online surveys, question bank development, management of online applications and registrations, and other digital learning processes.
For the financial year 2023-24, DEX reported a turnover of Rs 198.58 crore. The business unit has shown consistent performance with turnovers of Rs 199.79 crore in FY 2021-22 and Rs 201.25 crore in FY 2022-23.
CL Educate views this acquisition as a strategic diversification within the EdTech sector. The deal will be funded through a combination of debt and internal accruals. The indicative timeline for completing the acquisition is between 3 to 6 months.
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