MPS Limited announced that its material subsidiary, MPS Interactive Systems Limited (MPSi), has strengthened its position in the corporate learning market by increasing its stake in two Australian learning companies. MPSi has acquired an additional 17.50% stake in Liberate Learning Pty Ltd and App-eLearn Pty Ltd, raising its shareholding from 65.00% to 82.50% in these entities.

Acquisition Details

The acquisition was completed through cash consideration, with the following share prices:

This move is part of MPSi's strategic plan to enhance its presence in the corporate learning market, particularly in the Asia-Pacific (APAC) region. The company aims to benefit from improved operational synergies and efficiency gains arising from Liberate Group's scalable team and innovative business model.

Future Plans

MPSi plans to acquire the remaining 17.50% shareholding in Liberate Learning Pty Ltd and App-eLearn Pty Ltd, as well as the 35% shareholding in Liberate eLearning Pty Ltd, in the near term. This will complete MPSi's full acquisition of the Liberate Group entities.

About Liberate Group

Established in 2010, Liberate Group is a prominent provider of digital and blended learning solutions in Australia. The group offers a wide range of services, including:

• Learning consulting
• Content development
• Immersive technologies (VR, 360° simulations, gamification)
• Video animation
• Deployment of scalable digital learning platforms

Liberate Group has shown consistent growth, with revenues for the past three financial years ending June 30 as follows:

The group serves a diverse customer base, including blue-chip corporates, government departments, and major educational institutions across Australia.

Strategic Implications

Rahul Arora, Chairman and CEO of MPS Limited, commented on the acquisition: "The corporate learning sector is one of our most dynamic growth areas. The acquisition of an additional stake in Liberate Group further aligns with our strategic objective to expand our global footprint and deliver comprehensive, technology-enabled learning solutions to clients worldwide."

This acquisition is expected to enhance MPSi's capabilities in providing innovative education technology solutions and strengthen its position in the corporate learning industry. As the demand for digital and blended learning solutions continues to grow, especially in the post-pandemic era, this strategic move positions MPSi to capitalize on emerging opportunities in the global learning market.

The transaction complies with the provisions of the Foreign Exchange Management Act, 1999, and related regulations, ensuring adherence to regulatory requirements for overseas investments.

As MPSi continues to expand its global presence and service offerings, this acquisition marks a significant step in its growth strategy, potentially leading to enhanced value creation for MPS Limited and its stakeholders.

MPS Interactive Systems Limited (MPSi), a material subsidiary of MPS Limited, has entered into a significant Share Subscription and Shareholders Agreement (SSSHA) with Australian tech visionary Rodney Charles Beach. The deal marks a strategic move to bolster MPSi's position in the global learning technology market.

Investment Details

The agreement involves a substantial investment of INR 87.36 crore (INR 873.62 million) by Beach to acquire equity shares in MPSi. Here are the key details of the transaction:

Strategic Implications

This investment brings several strategic advantages to MPSi and its parent company, MPS Limited:

1. Leadership Acquisition: Rodney Charles Beach, with over 30 years of experience in learning and education technology, will assume the role of President at MPSi.
2. Global Expansion: The deal aligns with MPS Limited's strategy to accelerate its corporate learning initiatives and expand globally in AI-powered learning solutions.
3. Ownership Structure: Post-investment, MPSi will cease to be a wholly-owned subsidiary of MPS Limited. However, MPS will retain over 95% ownership, ensuring continued control and strategic direction.

Investor Profile

Rodney Charles Beach brings significant expertise to MPSi:

• Founder of Australia's Liberate Group
• Over three decades of experience in learning and education technology
• Recognized leader in corporate training and digital learning innovation

Agreement Terms

The SSSHA outlines several key terms:

1. Customary Rights: Beach is granted customary tag-along and drag-along rights.
2. Future Issuances: MPS retains the right to issue new shares, subject to value appreciation.
3. Limited Special Rights: Beach has no special rights regarding director nomination, pre-emptive subscription rights, or capital structure restrictions.

Market Impact

This strategic investment is expected to enhance MPSi's competitive position in the global learning technology market. By leveraging Beach's expertise and the additional capital, MPSi aims to drive innovation in AI-powered learning solutions and expand its global footprint.

Conclusion

The INR 87.36 crore investment by Rodney Charles Beach into MPS Interactive Systems Limited represents a significant milestone for the company. It not only brings in substantial capital but also adds valuable leadership and expertise to drive MPSi's growth in the rapidly evolving learning technology sector. As the corporate learning market continues to expand, this strategic move positions MPSi to capitalize on emerging opportunities and solidify its status as a global leader in innovative learning solutions.