Tata Industries sells e-learning unit to digital publishing firm MPS
Tata Sons subsidiary, Tata Industries Ltd, has announced the selling out of its e-learning solutions unit to listed publishing services company MPS Ltd.
Tata Industries which invests in new and hi-tech businesses 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 subsidiaries 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.