Entellect announces education sector push

Will raise $25 million capital and acquire CSG software licences and Canadian education software company

Entellect Solutions (ASX:ESN) is undertaking several large scale initiatives aimed at making a major play in the education software sector.

According to notification to the Australian Stock Exchange, the initiatives include a $25 million capital raising via the placement of 125 million shares and two acquisitions.

The share raising will be carried out through the sale of shares to clients of EL&C Baillieu Stockbroking limited.

The first acquisition involves the company buying the international licence, excluding Australia and New Zealand, of Learner Enterprise and Learner Analytics from CSG Limited (ASX:CVG) subsidiary, CSG Education.

The deal is worth $15 million and payable through the issue of 60 million Entellect shares.

The second acquisition involves Entellect buying 100 per cent of the issued share capital of 1343929 Ontario Ltd and 1691826 Ontario Ltd. Both are holding companies for Canadian education software developer and distributor, The Administrative Assistants.

The deal is worth $CAD20 million plus further potential post-settlement payments over a maximum three year period.

Entellect chairman Jeff Bennett said in a statement to the ASX that the initiatives would see the company gain a global distribution footprint, a geographically spread customer base and a range of “best-in-class” education products.

Entellect is the holding company of MXL Consolidated, which provides web-based student administration and curriculum management software, and online publications software provider Virtual Communications International.

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