Gaja Capital-backed CL Educate Ltd said on Wednesday it has agreed to acquire ICE GATE Educational Institute Pvt. Ltd.
CL Educate will first acquire a 65% stake in ICE GATE for Rs 8 crore in cash over a period of 27 months and the remaining stake within five years, it said in a stock exchange disclosure. The value of the remaining 35% stake will be decided on basis of ICE GATE’s performance.
The acquisition will complement existing publication services of CL Educate for graduate aptitude test in engineering (GATE) examination, the company said.
Incorporated in 2015, ICE GATE provides coaching to students preparing for GATE and related exams. It also offers online lectures and test series.
In 2016-17, the company’s aggregate billing from GATE test preparation business including that of business partners was over Rs 9 crore.
CL Educate, which went public earlier this year, has struck a couple of other acquisition or investment deals in recent months.
In April, CL Educate increased its stake from 51% to 100% in educational services provider Accendere Knowledge Management Services Pvt. Ltd. It also agreed to acquire ETEN, the test prep business unit of coaching services provider IndiaCan Education Pvt. Ltd.
In July, CL Educate made a follow-on investment of Rs 8 crore in ed-tech firm Threesixtyone Degree Minds Consulting Pvt. Ltd.
In 2016-17, the company posted consolidated income of Rs 279 crore and a net profit of Rs 16.6 crore.