The competition regulator on Tuesday allowed Think & Learn Private Limited (BYJU’S) to acquire a certain stake of Aakash Educational Services Limited (AESL). In addition, it has also permitted the merger of BYJU’s and AESL.
The Competition Commission of India (CCI) has permitted the merger under Section 31(1) of the Competition Act, 2002. According to the Ministry of Corporate Affairs, “ The proposed combination will result in merger of AESL into BYJU’S, as a consequence of which, BYJU’S will be the surviving entity. As such, BYJU’S shall effectively acquire complete and sole control over AESL.”
The detailed order of CCI is awaited.
According to Bloomberg News, Byju's inked a deal to acquire AESL for $1 billion.
Byju’s is a private limited company incorporated in India. The company either directly or through its subsidiaries provides online educational services. It offers a technology-based education platform for primary and secondary school subjects, overseas and domestic test preparatory coaching services for entrance examinations for engineering, medical, etc.
Meanwhile, AESL is an unlisted public limited company incorporated in India. AESL (directly, or through its subsidiary Aakash Edutech Private Limited, or through its franchisees) provides curriculum-based coaching for K-12 students and test preparatory services for various competitive examinations such as, engineering examinations, medical examinations, Olympiads, National Talent Search Examination, etc.
Launched in 2015, BYJU’S has over 80 million students cumulatively learning from the app, 5.5 million annual paid subscriptions, and an annual renewal rate of 86 per cent.