HCL Learning Ltd, a wholly owned unit of HCL Infosystems Ltd, will sell its Digischool business to Everest Edusys and Solutions Pvt. Ltd in a transaction that will give it a 33% stake in the education company.
The Digischool business sells software licences for educational content to K-12 schools, HCL Infosystems said in a stock-exchange filing.
Noida-based HCL Learning will sell Digischool for Rs 20 crore in cash and optionally convertible debentures. In return, Chennai-based Everest Edusys will issue shares worth a 33% stake to HCL Learning.
The deal is subject to fulfillment of certain conditions and is likely to be completed by September.
Everest Edusys will become an associate company of HCL Learning when the deal closes.
Everest’s flagship brand is QED (Quest Explore Discover), which provides science education through interactive methods. It sets up interactive exhibit centres, called QED Labs, at schools to provide experiment-based hands-on science learning for students.
The company was founded in 2007 by husband-wife duo Krishna Srinivasan and Chokanath Hymavath. It reported Rs 48 lakh in turnover for 2015-16, down sharply from the Rs 8.11 crore it reported the year before. In 2014, the firm received Rs 5.7 crore (under $1 million) in a Series A round of funding led by Lok Capital, with participation from Chennai Angels.
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