Veranda Learning Solutions Ltd, the edtech firm, that got listed in the stock market earlier this month, announced on Monday that it was acquiring leading test prep firm T.I.M.E for Rs 287 crore.
The acquisition, for which Veranda has now signed a definitive agreement with T.I.M.E, will happen in two phases – 80% in the first phase, and the rest 20% after two years.
“For consideration of Rs. 287 crores, this 100% acquisition will be in a phased manner with 80% of the outstanding capital along with management control in phase 1, followed by the purchase of the remaining 20% at the end of two years (subject to the fulfillment of closing conditions),” the company announced on April 25.
Established in 1992, T.I.M.E. (Advanced Educational Activities Pvt Ltd) is a leading test-prep chain with a pan-India presence operating through 188 centres including franchisees spread across 98 cities in India. It has a sizeable market share in MBA test-prep market through various national and state-level entrance exams like CAT, MAT, and CMAT.
Besides, it also trains students to crack law entrances like CLAT, medical entrance NEET, and engineering entrances including JEE (mains) & JEE (advanced) among a host of other offerings.
The 30-year-old test prep company also has a chain of pre-schools under the T.I.M.E. Kids brand, operating through 222 pre-schools in 56 cities.
Kalpathi Suresh, Executive Director Cum Chairman, Veranda, said the acquisition of T.I.M.E. allows Veranda to expand its national footprint and also through this acquisition will aid diversification to the pre-school and the language training space.
“We are delighted to be partnering with Veranda on the journey ahead that T.I.M.E. will be undertaking. We are confident that this will be a synergistic relationship and that much benefit will accrue to both partners. More importantly, we believe that it will also help us provide an even better product offering to our students,” said Manek Daruvala, Founder and Director of T.I.M.E.
The Chennai-headquartered Veranda Learning shares ended Monday's trade at Rs.198.55 apiece on the BSE, five percent higher than the previous close. In comparison, the S&P BSE Sensex ended the day's trade at 1.08 percent lower.
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