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| Aptech acquires MAAC for Rs 76 cr |
| Press Trust of India / Mumbai Jan 28, 2010, 15:00 IST |
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IT training and education major, Aptech, has sealed a major buyout in the animation and multimedia education space by acquiring Maya Academy of Advanced Cinematics (MAAC) for Rs 76 crore.
"This acquisition will make us an education powerhouse, give us scale and synergy as well as a significant marketshare," Aptech Chief Executive Officer and Managing Director Ninad Karpe told PTI here today.
The acquisition is through the takeover of 100 per cent equity shares of Maya Entertainment (MEL), the parent company of MAAC, Karpe said.
"The deal is structured to include a cash payout as well as issue of equity shares of Aptech Ltd to the shareholders of MEL. The enterprise value is Rs 76 crore and the breakdown between the cash and equity components will be finalised very soon," Karpe said.
Issue of shares of Aptech is, however, subject to approval of its shareholders.
The cash to be paid will be from internal accruals.
"With the animation education industry poised to expand at 27 per cent CAGR, there is an immense potential in this segment and this acquisition will help us tap this potential," Karpe said.
Aptech, through its brand Arena Animation, is a leading player in the animation and multimedia education space with 158 centres pan-India.
MAAC, also a big player in the same space, is a premium brand with over 70 centres across the country.
With a network of over 1,000 centres spread over 35 countries, Aptech already owns well-recognised education brands -- Aptech Computer Education, Arena Animation, N Power, Avalon Academy, English Express and Aptech Worldwide.
"Across all our brands, we have 700 centres in India," he said.
"There would be a dual branding strategy and we will give students the choice of joining either," Karpe said, adding "we will look at things from a student's perspective."
MAAC will continue as a separate brand and a business head for it would be appointed soon, he said, adding "its existing team will continue -- there are a lot of talented people there."
On business strategy going forward, Karpe said that while there would be one overall strategy for Aptech's animation education business, there would be a separate strategy for both.
"We plan to continuously invest in quality content and course materials. We will look at expanding MAAC centres from the present number of 70," he said.
MEL's Director Niraj Bhukhanwala said in a statement that "the management of MAAC felt that through this integration, MAAC and Aptech will be able to harness all the benefits of a large company in a growing market and keep competition at bay. Through this, both the brands will be able to capitalise on each other's strengths".
Meanwhile, Aptech declared its stand-alone quarterly results for the period ending December 31, 2009. Profit After Tax (PAT) for the period stood at Rs 3.61-crore as compared to a loss of Rs 0.9-crore in the same quarter of the previous year.
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