3P Learning, the Australia-listed ed tech, has received a takeover offer from Indian online tutoring giant Byju’s, which has offered to pay A$1.45 a share for 100% of the business – equal to A$202 million (£110 million).

In terms of price, the offer by Byju’s betters another tabled by IXL – the K12 learning platform which in August announced it was to acquire 3P Learning – by 7%.

In a statement to the Australian Stock Exchange, 3P Learning said that the offer from Byju’s was “unsolicited”, adding that it “had not engaged in any way” with Byju’s.

3P Learning said that its board will “immediately” review and assess the proposal – and stressed that “there is no certainty that the indicative proposal will result in a binding offer” from Byju’s.

Edward Slade, an advisor to education companies on corporate matters, in a LinkedIn post described the move by Byju’s as “really interesting”, adding that the offer value “at only 2.8-times [3P Learning’s] revenues is hugely accretive for Byju’s”.

A deal between Byju’s and 3P Learning, if successful, would mark the former company’s first steps into Australia.

Byju’s has been capitalised several times this year by a range of investors, most recently in September, when it received new investment from BlackRock, Sands Capital and Alkeon Capital at an $11.1 billion valuation – rendering It the world’s most-valuable ed tech.

The organisation’s bid for 3P Learning marks a continuation of a buying spree on which Byju’s embarked earlier this year.

In August, the company bought coding start-up WhiteHat Jr. for $300 million in an all-cash deal.

Just a few weeks later, Byju’s snapped up LabInApp, a virtual simulation platform used by more than 5,000 schools across India, as it sought to expand its domestic footprint despite the Covid-19 pandemic.

Date published: 12 November 2020

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