Core Projects acquires 2 US-based education firms

Core Projects and Technologies, provider of ICT (information and communication technology) education services, acquired two US-based education companies today for $20 million (Rs 90 crore).

Core acquired Georgia-based education solutions company Technical Systems Integrators and New York-based Keenan and Keenan Group, an education consultancy. The two companies have a combined turnover of $25 million, with an average Ebit (earnings before interest and taxes) margin of 16 per cent.

Both companies together cater to the needs of about 1.5 million students across 1,500 schools in the US.

"Both companies are in areas of education where we were not present earlier. While Technical Systems Integrators is in project management and infrastructure, Keenan and Keenan is into higher education. These were missing in our portfolio," said Nikhil Morsawala, Core's chief financial officer.

Morsawala added that both acquisitions had been closed and would be revenue-accretive, immediately.

The company funded the acquisitions from the proceeds of a Foreign Currency Convertible Bond issue, which it closed in May. Morsawala said the company raised about $75 million (Rs 345 crore) from the issue. "We are also looking for further acquistions in the UK," he added.

Shares of the company rose 3.8 per cent to Rs 307, the highest in 33 months, on the Bombay Stock Exchange. The scrip finally closed at Rs 300.25, up 1.25 per cent.