Chennai-based public-listed edtech company Veranda Learning Solutions has signed a definitive agreement to acquire equity shares of CA test-prep provider JK Shah Education (JK Shah Classes) through its wholly owned subsidiary Veranda XL Learning Solutions, it said on Thursday.
The transaction will be completed in two phases, with the first phase seeing the payment of 76% of the outstanding capital together for Rs 337.82 crore. The entire transaction will be funded through a combination of debt and equity.
JK Shah Classes currently operates 75 centres across 39 cities and is headquartered in Mumbai. JK Shah will continue to remain as chairman for life on the board. Pooja Shah and Vishal Shah will continue to lead day-to-day operations as chief operating officers.
Kalpathi S Suresh, chairman and executive director, Veranda Learning Solutions, said, “This acquisition is a crucial breakthrough into high-demand courses such as Chartered Accountancy as well as a bouquet of financial and commerce courses. We believe with Veranda’s strength and technological capabilities coupled with J K Shah Classes’ strong brand recognition and legacy, we will both reach greater heights in the coming years…”
JK Shah said: “I am pleased to announce our coming together with Veranda Learning Solutions. This will allow us to leverage their technological prowess and deep network to further strengthen J K Shah Classes’ network and offerings…” InCredMAPE and KPMG were the buy side advisors while InCorp Advisory was the sell side advisor for the deal.
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