Ed-tech firm Veranda Learning acquires CA Test prep platform JK Shah Education for Rs 337.8 crore

Ed-tech firm Veranda Learning Solutions has agreed to buy pioneering CA test prep platform J K Shah Education as the Chennai-based firm looks to expand into chartered accountancy and company secretary coaching.

The said transaction will be completed in two phases, with the first phase seeing the payment of 76% of the outstanding capital together for INR 337.82 Crs. The entire transaction will be funded through a combination of Debt and Equity, both the companies said.

J. K. Shah Classes has been a pioneer in coaching the CA, CS, and CMA aspirants in India for the last 39 years, and is one of the largest test-prep organisations in India. It currently operates through 75 centres located across 39 Indian cities and is headquartered in Mumbai. Professor J. K. Shah will continue to remain as Chairman for Life on the board and will guide the growth and strategy of the company.

“Veranda will leverage its expertise to establish J. K. Shah Classes’ presence in the South, North and East of India, along with strengthening their online and hybrid offerings,” said Kalpathi S Suresh, chairman and executive director at Veranda. “Veranda grew through acquisitions and we are aiming to significantly increase the revenue and profitability through our product mix,” he said.

JK Shah will continue to run as a step-down subsidiary of the listed entity, Veranda. CA. Pooja Shah and CA. Vishal Shah will continue to lead the day-to-day operations as Chief Operating Officers. J. K. Shah Classes offers training programs for various commerce offerings including all levels of Chartered Accountancy and Company Secretaryship, CMA, Junior College, CFA, ACCA, etc., and holds a record of training around 90,000 students across courses every year.

“The transaction will allow us to leverage their technological prowess and deep network to further strengthen J. K. Shah Classes’ network and offerings,” said J. K. Shah, chairman of JK Shah Classes.

InCredMAPE and KPMG were the buy side advisors while InCorp Advisory was the sell side advisor for this deal.

Source: Economic Times

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