TMT
By 25 April, 2018
Tata Industries sells e-learning unit to listed digital publishing firm
Photo Credit: Reuters

Tata Industries Ltd, a Tata Sons subsidiary which invests in new and hi-tech businesses, has announced that it will sell its e-learning solutions unit to listed publishing services company MPS Ltd.

Tata Industries said in a statement the two companies have entered into definitive agreements over the acquisition of Tata Interactive Systems (TIS) India and its Swiss and German subsidiaries - Tata Interactive Systems AG and Tata Interactive Systems GmbH.

Noida-based MPS said the cash deal is worth up to Rs 80 crore ($12.3 million).

The transaction is expected to be completed by June 30 once certain customary conditions are met and Tata Industries' shareholders approve the deal.

Milind Shahane, currently the CEO of Tata Interactive Systems and Tata ClassEdge, will continue to head both e-learning enterprises for now. Once the deal is closed, he will continue as Tata ClassEdge's chief executive.

Tata Interactive Systems was started nearly three decades ago. It handles training outsourcing, content development and educational games. The firm acquired its German and Swiss subsidaries in 2005,

“The acquisition of TIS is our definitive entry into the enterprise learning solutions market after the initial launch through [digital platform] Magplus in 2016," said Rahul Arora, CEO of MPS Ltd. "The acquisition adds a global sales and marketing engine that has a rich background in scaling business and will unlock combined value."

TIS had reported consolidated revenue of Rs 140 crore in the financial year 2016-17.

Wadia Ghandy & Co., Hengeler Mueller and Bratschi Attorneys-at-law are the legal advisors to TIL for this transaction. Avendus Capital has acted as the financial advisor.

Ernst and Young was the financial advisor to MPS, while JSA Law provided legal advice to the firm.

MPS Ltd

MPS, formerly Macmillan India Ltd, provides content creation, production and technology services to academic and educational publishers in India, Europe and the US.

It was earlier part of the Macmillan Group, a privately held global publishing firm. However, Delhi-based ADI BPO purchased Macmillan’s stake in MPS in 2011 and now has management control of the company.

MPS is listed on the National Stock Exchange and has a market capitalisation of more then $150 million. The firm has 2,500 employees across five centres in India and six US offices.

In 2016, MPS had acquired Sweden- and US-based Magplus, a digital platform that creates and distributes content to mobile apps, for an undisclosed amount.

MPS, through its US unit MPS North America LLC, had acquired publishing services company TSI Evolve for $1 million in March 2015.

In October 2014, MPS had purchased Electronic Publishing Services, a provider of editorial, content creation, art and design services.

Tata Industries

Tata Industries is a subsidiary of Tata Sons. Several Tata companies hold equity in the firm.

Tata Industries’ main activities are to promote Tatas’ entry into new businesses and invest in operating companies to facilitate growth.

Its existing investments span life sciences and healthcare, digitally enabled businesses, education, renewable energy, consulting, aerospace manufacturing and foods.

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