MPS - Liberate Acquisition Deepens e-Learning Capabilities, Presence: Dolat Capital

Dolat Capital Report

MPS Ltd. announced acquisition of 65% stake in Liberate Learning Group (Australia) for a cash consideration of Australina dollar 9.3 million (Indian rupee 49.5 crore) and the remaining 35% to be acquired by MPS in subsequent tranches based upon pre-defined valuation methodology. 

Liberate Group is a renowned Australian learning provider with a consultative approach, delivering award-winning online learning solutions to various sectors.

Liberate’s success stems from an innovative virtual model and cuttingedge technology, thriving in the pandemic-driven online education surge, driving 28% compound annual growth rate over FY20-FY22 with 40% Ebitda margins.

The transaction is d at 1.12 times P/S on FY22 (Year ending June). Liberate Learning Group’s acquisition reflects right alignment of MPS’s FY28 vision (to achieve Rs 1.5 billion revenue).

Transaction has led to uptick in growth prospects for eLearning business, thus driving up our growth confidence and target price to Rs 1,710 d at 20 times of FY25E EPS (implies sub-1.5 times on price/earnings to growth basis).

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