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.

MPS Limited , a prominent player in the content and platform solutions industry, has reported a robust financial performance for the third quarter and nine months ended December 31, 2021. The company's board has also made significant decisions regarding a subsidiary dissolution and a share buyback program.

Financial Highlights

MPS Limited demonstrated strong growth in both revenue and profitability:

For the nine-month period:

Segment-wise Performance

MPS Limited operates through three main segments, each contributing significantly to the overall revenue:

1. Content Solutions: ₹5,955.00 lacs
2. Platform Solutions: ₹3,098.00 lacs
3. eLearning Solutions: ₹2,158.00 lacs

Corporate Actions

Subsidiary Dissolution

The Board of Directors has approved the voluntary dissolution of HighWire North America LLC, a wholly owned overseas subsidiary incorporated in Delaware. This subsidiary had no operations during the financial year and will cease to exist retrospectively from December 21, 2021.

Share Buyback Program

In a move that could potentially boost shareholder value, MPS Limited's shareholders have approved a buyback proposal with the following details:

• Maximum number of shares to be repurchased: 944,444 equity shares
• Buyback price: ₹900.00 per share
• Aggregate consideration: Not exceeding ₹8,500.00 lacs
• Offer period: January 14-28, 2022

This share buyback program demonstrates the company's confidence in its financial position and commitment to returning value to shareholders.

MPS Limited's strong financial performance, coupled with strategic corporate actions, positions the company for continued growth in the content and platform solutions sector. The significant increase in profitability, particularly the 23% rise in Q3 profit, reflects the company's operational efficiency and market strength across its diverse business segments.