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Chennai, 02/Mar/2010
EdServ to buy SmartLearn WebTV for a consideration of $10 million

* Following its acquisition of the Hyderabad-based SchoolMATE, the education and placement company EdServ on Tuesday announced its plan to acquire a Chennai-based e-learning portal SmartLearn WebTV, for a consideration of $10 million (approximately Rs 4.6 crore).

The nine-month-old SmartLearn WebTV, which has about 10,000 enrolments as on date, specialises in e-learning offering for IIT JEE and AIEEE aspirants.

According to Mr S. Giridharan, Chairman and CEO, EdServe, SmartLearn will be a new revenue stream to EdServe's education business and will the company will target “the Rs 10,000-crore IIT-JEE and AIEEE training space”.

EdServe, which currently offers e-learning courses and online tuition services for college and school students, will take SmartLearn pan India to rope in IIT-JEE AIEEE aspirants from across the country for the exams in the next academic year.

“With this, we target to more than double the student base to over 25,000 students for IIT JEE and an equal number for AIEEE and expects to achieve at least Rs 20-crore revenue from this,” said Mr Giridharan.

EdServ achieved a turnover of Rs 15.41 crore and net profit of Rs 5.6 crore for the quarter ended December 31, 2009. For the financial year 2008-09, it posted a net profit of Rs 3.5 crore on a turnover of Rs 8.5 crore.

The share price of EdServe today closed at Rs 263.75 (253.85) on the NSE.