IBT acquires UK education consultants in India for $9.4m

Churchlands-based education provider IBT Education Ltd has acquired India-focused British education consultancy company Study Overseas Ltd and its associate, Employment Overseas Ltd, for around $9.4 million.

IBT will fund the acquisition from its existing funding facilities.

The full text of a company announcement is pasted below

IBT Education Ltd today announced the 100 per cent acquisition of the largest British education consultancy in India, Study Overseas Ltd and its associate company Employment Overseas Ltd, for a combined consideration of £3.74 million.

SOL is a provider of student recruitment services to UK educational institutions. Established in 1996, it currently operates from a network of ten liaison offices throughout India in Delhi, Mumbai (2 offices), Bangalore, Hyderabad, Chennai, Kochi, Ahmedabad, Coimbatore and Visakhapatnam.

EOL, which also operates under the business name Study Overseas UK, commenced trading in May 2004 and operates from a central London office. EOL offers an immigration and employment advice service to overseas students already in the UK and EOL(SOUK) provides a student recruitment service to UK educational institutions.

Both SOL and EOL(SOUK) have recently diversified and added student recruitment services to Australian educational institutions.

The demand for Australian education from both Indian and British students has seen significant increases over the last few years.

Chief Executive Officer Rod Jones said the acquisition of SOL was an important strategic addition to the IBT Group as it added the important Indian market to IBT's student recruitment network. The acquisition of EOL(SOUK) provides the IBT Group with a presence in the London market and exciting opportunities to capitalise on the growing number of British students seeking advice and assistance with studying in Australia. EOL(SOUK)'s employment and immigration services offers significant competitive advantages to both SOL and EOL(SOUK) by offering employment and immigration advice to overseas students on completion of their courses.

"We are extremely pleased to add SOL's extensive Indian market coverage to our strong student recruitment presence in China through EduGlobal China," Mr Jones said.

"The acquisition of SOL will provide IBT with extensive representation in the significant overseas student markets of India and China and further expand our global education services offering."

"SOL provides us with ten recruitment offices throughout India and we expect SOL to expand its network further into other major centres in India in the future."

EOL (SOUK) provides us with a presence in the UK market and especially in London which is a major centre for overseas students looking to study in the UK as well as British students looking to study in Australia. EOL(SOUK) will be able to assist us develop this market for our UK colleges as well as continue to promote other UK education institutions and provide a counselling service for British students looking to study in Australia.

"I believe SOL and EOL(SOUK) will become an important strategic asset for IBT in the years ahead."

SOL and EOL(SOUK) Founding Director and owner Luke Jeffers said he was delighted that both companies were joining a highly regarded global education group like IBT and particularly one from Australia as Mr Jeffers started his own career working in a TAFE college in Dover Heights, Sydney.

"The IBT Group is a natural home for SOL and EOL(SOUK), with its growing world-wide recruitment network and shared values and commitment to providing quality services to overseas students and client institutions," he said.

"Within the IBT Group, SOL and EOL(SOUK) will look to expand its already strong presence in India, consolidate its presence in the UK and grow its client network by providing its promotional and education counselling services to Australian institutions."

"I know that many Australian institutions are keen to work with reputable agents in the UK and India and by leveraging IBT's existing strong relationships with major universities in Australia, SOL and EOL (SOUK) will be ideally placed to develop this area of business in the future."

"I look forward to working with the IBT management team to make this growth opportunity a reality."

IBT expects the acquisition to be earnings accretive in year one. IBT will fund the acquisition from its existing funding facilities.

As part of the acquisition, Mr Jeffers will remain with SOL and EOL(SOUK) as a consultant for a period of up to 6 months.