Global PE majors flock to Excel Soft

Valuation at close to Rs 400 crore.

Global and Indian private equity biggies as well as strategic players are in the race to acquire a minority stake in Excel Soft Technologies, the Mysore headquartered e-learning firm. This six year old firm provides a range of customised learner-centric Learning systems, Test & Assessment systems and Desktop tools.

According to industry information, the company which has a top line of around Rs 50 crore is expected to be valued at close to Rs 400 crore for this stake sale.

When contacted, an official spokesperson declined to comment on the transaction. Sources further indicate that ICICI Ventures is one of the PE players keen on this deal. A deal is expected to be signed by early January 2008.

Industry analysts indicate that this firm is attracting such a premium valuation due its product licensing approach on which services and consulting add value and stickiness. Excelsoft has created intellectual property in the area of e-learning technologies and combines its strengths in software development, instructional design and e-learning content development to deliver e-learning solutions.

¿As we understand on a topline of around Rs 50 crore, this firm may have a net profit of around Rs 25 crore. Adding to this is the space of e-learning which is getting to mature,¿ noted the analyst.

Excel Soft currently employs around 500 people across centres in Mysore, Hyderabad and New Delhi and serves a marquee global list of clients in global educational publishers, universities and corporate.

A few of names who are clients of this firm are Pearsons Education, Infosys Technologies, Indian Institute of Foreign Trade, Oxford University, World Bank, UNESCO, besides a clutch of others.

The company of late has been keenly focusing on the test and assessment platforms which are key enablers for universities.