19 April 2018, India:
Ebix Inc has acquired majority stake in e-learning firm Smartclass Education Services Private Limited (Smartclass). Under the terms of the agreement, Ebix will pay up to $8 million in cash for its stake in Smartclass.
“Smartclass will be tightly integrated into Ebix’s Education and e-learning initiatives in India and is seen as one of the many steps, that Ebix intends to take with an intent to invest up to $100 million in the sector,” the company said in a statement.
“The e-learning business model is typically asset lite and caters well to strong recurring operating margins, once the customer aggregation crosses the threshold levels. We have been eyeing India’s fast-growing e-learning sector for many years now, fueled by education being one of the highest spending areas traditionally for an Indian median household. Towards that extent, we have earmarked a $100 million amount for investment in India’s e-learning sector and the acquisition of Smartclass is a logical first step for Ebix to establish its presence in the country’s e-learning markets,” said Robin Raina, Chairman, President and CEO, Ebix.
Robin added, “A few years back, we started investing in the healthcare e-learning sector through our Indian subsidiary acquiring Birmingham based Oakstone LLC. Any business-like e-learning where you can create an asset and sell it thousands of times, has strong possibilities of generating strong operating margins and cash flows.”
Robin further added, “When you consider the strong focus that the Indian Government has put on investing in the e-learning sector in the recent budget, the present nascent state of the country’s education infrastructure, and the fast growth that high tech companies like Smartclass have experienced in India, the decision to take up a strong position in the country’s e-learning markets became an easy one for Ebix.”
“We are very excited by the possibilities of growth, geographical reach and financial strength that this investment from Ebix brings to Smartclass. We look forward to becoming a part of the Ebix family and replicating Ebix’s international success over the last two decades, to build upon our existing strengths and take a leadership place in India’s e-learning industry,” said Divya Lal, Chief Executive Officer, Smartclass.
Smartclass is a leading e-learning and education company. It offers innovative products & solutions to enable learners and teachers reach excellence.
Ebix Inc is a leading supplier of On-Demand software solutions & E-commerce services to the insurance industry in Offshore & Custom software development.
(Image – Ebix)