iCollege (ASX:ICT) has signed a binding Heads of Agreement to acquire Dynamic Learning Services, a Registered Training Organisation currently delivering education courses in Australia, Singapore, India, Malaysia and Vietnam.
DLS achieved an unaudited EBIT for FY14 of $1 million on $2.98 million revenue. Total consideration is $4 million.
ICT will make an initial upfront acquisition payment of $1.5 million, with the remaining consideration of $2.5 million based on specific EBIT performance hurdles over the next 3 years, payable in a combination of cash and shares.
Dynamic's courses are currently 100% classroom-based and upon completion of the acquisition will be integrated onto iCollege’s mobile optimised online platform.
This strategic acquisition enhances iCollege’s course portfolio offering to include hospitality, business administration, real estate, aged care, retail, and courses specific to the mining sector and career transition.
Furthermore, the acquisition brings across a solid corporate client base, which includes brand names such as LJ Hooker, PRD Nationwide, St George Illawarra Dragons, Raine and Horne, McGrath Real Estate, and Anytime Fitness.
Dynamic Learning Services provides iCollege with a profitable platform to further grow its course offering and to expand into international markets.
iCollege focuses on vocational education.Recent research indicates that less than 40% of the skills employees needed on the job are gained through present vocational education and training.
The company is lightly capped at $7 million.
