EdServ Buys Pre-School Business
Chennai-based IT learning placement solutions firm EdServ Softsystems is acquiring pre-school business of Sparkling Minds in an all cash deal worth Rs 1.25 crore.
Founded by ex-Infoscians in 2007, Sparkling Minds is an on-line pre school business offering with a customer base spanning US, Europe and Australia. It has around 2,000 registered users including teachers, parents, pre school owners besides children. The latest deal gives it an exposure in pre school business in India which it says will grow 40% to become a billion dollar market by 2012.
This is the third acquisition by EdServ in the last 45 days. Last month it acquired SchoolMATE, a school ERP and earlier this month signed a letter of intent to acquire SmartLearn WebTV, an IIT JEE and AIEEE content company.
The company had come up with an issue of 3.9 million shares priced in the Rs 55-60/share range last year. Its IPO was oversubscribed 1.3 times even as the issue had got a Grade 1 indicating 'poor fundamentals' by rating agency CARE.
A seven year old firm operates under three business units: Elmaq (IT Training), Heads (Education cum placement business) and Lambent (Software Development). It is co-promoted by husband-wife duo S Giridharan and G Geeta who together own around 44% stake (pre-IPO) which became 29.5% post issue.
EdServ had revenues of Rs 15.51 crore with net profit of Rs 5.64 crore for the quarter ended December’09. It is in the process of raising Rs 130 crore through a QIP and has also taken approval to raise a total of $500 million through various routes.