The acquisition of Savvica will add online community building capabilities to Educomp's content offerings.

Educomp Solutions, the online, interactive and multimedia education content and solutions provider announced on Wednesday that it had acquired a 70.05 per cent stake in Canadian online teaching solutions company Savvica.

Educomp offers solutions in pre-school learning management, K-12 schools, school management and online as well as offline tutoring.

Its specialised product range also includes learning leadership management solutions and Smart Class learning management modules for private schools and student centred e-tutoring products such as Mentoraide, Mathguru.com and Roots to Wings. Educomp had developed its offline learning and infrastructure management solutions on its own.

To add online solutions to its kitty, Educomp had previously acquired AsknLearn, a Singapore based e-learning content provider. It also took a 76 per cent stake in ThreeBrix E-Services, the owner of learninghour.com, an online and offline learning solutions provider focused at Indian students.

The acquisition of Savvica will add online community building capabilities to Educomp's repository of content across its various initiatives. Later this year, Educomp plans to launch a project to build online communities of instructors and learners based on geographical regions and subject matter, leveraging Savvica's skills.

The company doubled its revenues from Rs 55.5 crore to Rs 110.1 crore in FY07. Its operating margins have consistently expanded from around 45 per cent in FY06 to nearly 60 per cent at the end of the first quarter of FY08.

Educomp is expected to continue delivering its blockbuster performance in the next two years, as analysts expect its revenues to grow at a CAGR of 90 per cent over FY07-09.

The company's profitability is expected to expand even further, leading to an earnings growth of more than 90 per cent. The stock scaled a new high of Rs 3079 on September 20. At the current price, the stock trades at an expensive 86 times estimated FY08 earnings of Rs 35 and 43 times estimated FY09 earnings of Rs 43.

From: Business Standard