SSI confirms Aptech buy

BANGALORE: All doubts have now been put to rest with SSI officially announcing its plan to pick up a controlling stake in Aptech. As a first step, SSI Ltd has agreed to buy out 27.18 percent promoter stake in Aptech Ltd. The agreed price is Rs 49.75 per share for 4,932,408 shares, amounting to a consideration of Rs 24.54 crore.

Following this, SSI plans to make an open offer to raise its stake to over 50 percent in Aptech Ltd. Finally, the education and training business of SSI Ltd will be integrated with Aptech Ltd. Playing on the popularity of the Aptech brand in the country and across the world, SSI Ltd. plans to retain the brand for the combined new entity. Earlier Aptech had disintegrated its software services division in to Hexaware and looks like SSI Ltd. is just following suit.

SSI’s education and training division had revenues of Rs 121 crore for the financial year ended 30 June 2002, and Rs 19.09 crore for the quarter ended 31 December 2002. It operates 759 training centers and employs 435 people. Aptech Ltd. had global billings of Rs 299 crore for the period ended 31 March 2002 and Rs 76.10 crore for the quarter ended 31 December 2002. It operates 2449 training centers in 52 countries, and employs 446 people.

A press statement from SSI confirmed this as it informed that the timing and details of the above sequence of events is subject to necessary approvals from the boards of the two companies and regulatory authorities. In July 2002, SSI’s board had resolved to separate its education and training business, and consulting and software services business to streamline operations.

"This acquisition will consolidate the significant synergies between SSI and Aptech," says Kalpathi S Suresh, chairman and CEO, SSI Ltd. "SSI is recognized for its strengths in short-term courses in emerging technologies and Aptech has significant strengths in long-term courses and multimedia training. Further, Aptech’s training network includes a number of international centers that are running successfully. I am confident that the combined entity will be a market leader in the IT training industry and will deliver great value to our customers, partners and employees."

It is learnt that BG Menon, the CEO of SSI Education, will be leaving SSI to pursue other opportunities and Pramod Khera, CEO and MD of Aptech Ltd., will continue as the CEO of the combined entity. Together, the Aptech-SSI combine will have 3208 centers and global revenues of over Rs 420 crore.

"The existing promoters of Aptech have divested their equity holding in favor of SSI Ltd. by which SSI Ltd. becomes the largest equity stakeholder of Aptech Limited," says Atul Nishar, chairman, Aptech Limited.