EdServ to acquire content of Prosel Ventures

Edserv Softsystems Ltd has decided to acquire contents of Prosel Ventures Pvt Ltd for a consideration of Rs 35 crore. This will be by way of equity allotment. Besides, the company has also tied-up with Nokia to provide education content through mobile phones.

S Giridharan, chairman and CEO, EdServ Softsystems, said the company was hitherto taking contents from Prosel on lease basis. As the cost of service was going up, and to avoid royalty cost, the company has decided to acquire the content part.

He added that every year the number of students appearing for CA, CS and CWA exams was growing and even larger was the number who aspire to apply.

It is estimated there are more than 1 million students in India appearing for CA,CS and CWA exams every year. Prosel provides content for these courses. It has developed nearly 600 animated video lectures, assessment systems, supporting materials such as workbooks and revision materials for all three stages (foundation, intermediate and final examinations). It also does research in the education sector.

Prosel’s content can also be adapted to serve as supplementary learning and tutoring material for higher secondary students in schools across the country. “We have a good reach and they have a good content both can go hand in hand,” Giridharan said.

Edserv will issue 2.5 million equity shares of Rs 10 each at a price of Rs 140 per share, which is higher than the price determined price of Rs 130 per share.

Giridharan said Edserv would raise Rs 15 crore by issuing 700,935 fully convertible equity warrants of Rs 10 each at a price of Rs 214 to the Gujarat-based Dainik Bhaskar Corp, one of the country's leading Hindi daily.

The daily would have 2.7 per cent stake in EdServ post the issue. In November last year, the company had issued equity warrants worth nearly Rs 35 crore to three other media houses -- Dainik Jagran, HT Media and Bennett Colman & Co. EdServ’s shareholders approved the issue of equity warrants to DB Corp on Thursday at the company’s tenth annual general meeting.

On its tie-up with Nokia, Giridharan said the company became an application developer for Nokia. According to him, mobile space is one sector that will ensure sustained profitability and growth for the company. The company already tie-up with Samsung and BlackBerry.