IT education services firm Aptech is acquiring digital content production and education services firm Maya Entertainment in a cash-cum-stock deal. Aptech will reportedly acquire Maya for Rs 76 crore. The value of the deal was not disclosed but VCCircle calculations put the stock component of the deal Rs 38.7 crore.
Backed by Enam Securities, Bhukhanwala Holdings, Intel Capital and Concept Advertising, Maya Entertainment is engaged in two verticals, studio and education. The company has a production studio for animation, visual effects and gaming content while the education business imparts training in animation and visual effects in India and abroad.
Aptech will issue 2.2 million of its own shares to existing shareholders of Maya for acquiring 100% stake in the company. Although the exact pricing of the preferential allotment is yet to be disclosed, at the current price of Rs 172 a piece, it would translate into a deal worth Rs 38.7 crore ($ 8.3 million).
The issue will comprise around 4.5% of the diluted equity base of Aptech, which counts among its investors names such as Rakesh Jhunjhunwala as one of the promoters and its chairman, commands a market cap of around Rs 800 crore.
Maya’s animation education business is likely to be meshed with Aptech’s own presence in the market through Arena Multimedia, which claims leadership in the segment. Maya’s Mumbai animation studio is spread over 22,000 sq. ft. facility in northern suburb of Malad. The Delhi animation studio, opened in early 2008, has a capacity of 60 artists and is currently engaged in working on an international TV series. Its technology is based on a design white paper created by Intel in 2003.
From being a pure domestic IT training company, Aptech has expanded overseas and operates through two distinct business segments, retail and non-retail (institutional). The retail segment consists of global IT, multimedia training and N-Power (hardware and networking training brand) while the non-retail segment consists of government projects and training solutions. The retail business, with emphasis on franchising, constitutes around 70% of the company's revenue.
Aptech has established its presence in 35 countries through more than 700 centres (additional 250 in China) including those in new and emerging markets such as Vietnam, Turkey, Nigeria, Fiji, Yemen, Sudan, South Africa, Malaysia and Philippines.