Entellect Solutions’ (ASX:ESN) plans to become a major player in the education software sector has suffered a set back, with wholly owned subsidiary MXL Consolidated being placed into voluntary administration.
The deal is a major blow as MXL, a provider of web-based student administration and curriculum management software, is responsible for conducting the significant majority of trading operations of the Entellect group.
Further, Entellect’s plans to acquire the international licence, excluding Australia and New Zealand, of Learner Enterprise and Learner Analytics from CSG Limited (ASX:CVG) subsidiary, CSG Education, have also fallen through.
In an ASX statement CSG said that the transaction was dependent on several conditions, and that these conditions could not be met by Entellect.
It is not understood whether these conditions relate directly to the now public state of MXL.
As reported by Computerworld Australia, Entellect said in March that it intended to run a $25 million capital raising via the placement of 125 million shares and to make two acquisitions, one of which was for the CSG licences.
The other, was to purchase 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.
At the time, 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.