Chennai-based EdTech company Veranda Learning Solutions Ltd. has signed a definitive agreement for the acquisition of Mumbai-based J. K. Shah Education Pvt. Ltd. (JK Shah) through its wholly owned subsidiary Veranda XL Learning Solutions Pvt. Ltd.
In the first phase, Veranda will pay ₹337.82 crore for 76% stake through a mix of debt and equity. The final closing value will be based on JK Shah’s turnover from November 24 to October 25. For FY23 ended March, JK Shah posted a revenue of ₹94 crore, the company said in a regulatory filing.
Upon completion of the acquisition, JK Shah would become a VXL subsidiary and a step-down subsidiary of Veranda. This is Veranda’s fourth acquisition.
Founded in 1984, JK Shah has been offering commerce related coaching classes through its brand JK Shah Classes. It has 75 centres in 39 cities. Mr. J. K. Shah will continue to remain as Chairman for Life on the board and will guide the growth and strategy of the company.
“In our journey to become a one-stop shop for all the educational needs of students at a reasonable price, we at Veranda are committed to adding specialised companies to our portfolio. We believe this acquisition will drive strong profitability for Veranda going ahead,” said Kalpathi S. Suresh, chairman and ED, Veranda Learning Solutions.