In a move to bolster its presence in the higher education sector, OpenLearning Limited (ASX: OLL), a leading AI-powered SaaS platform for lifelong learning, has successfully completed the acquisition of three prominent Australian online higher education marketplaces. This acquisition marks a pivotal moment for OpenLearning, enhancing its student acquisition capabilities and opening new avenues for cross-selling opportunities.
The acquired marketplaces, namely PostGradAustralia.com.au, TheUniGuide.com.au, and StudyNewZealand.nz, collectively attract over 800,000 users annually and list more than 15,000 courses and degrees from 70 institutions. These platforms have proven to be profitable, generating revenue through listing fees paid by higher education providers, including Australian universities, private colleges, and registered training organizations.
Strategic Benefits of the Acquisition:
Complementary Product Offering: The integration of these marketplaces with OpenLearning's existing platform provides an additional channel for education providers to promote their courses, thereby enhancing the overall value proposition to customers.
Cross-Selling Opportunities: This acquisition not only expands OpenLearning's product mix but also facilitates clear cross-selling opportunities. Leveraging the new and shared customer base, OpenLearning aims to drive significant revenue growth.
Value-Accretive: The marketplaces are already profitable and are expected to require minimal additional investment for future growth. This aspect makes the acquisition particularly value-accretive for OpenLearning.
OpenLearning's Group CEO & Managing Director, Adam Brimo, expressed enthusiasm about the acquisition, highlighting its potential to broaden the company's reach and deepen its impact in connecting education providers with students worldwide. The acquisition was finalized for an upfront cash payment of $231,472, with an additional 34,000 contingent upon the successful renewal of a customer contract.
This strategic move aligns with OpenLearning's mission to revolutionize the way education is accessed and delivered globally. With a strong foothold in the Australian and Malaysian higher education sectors and expanding presence in Indonesia and India, OpenLearning is set to further cement its position as a trusted partner in lifelong learning.
For more updates on OpenLearning's journey and its impact on the higher education sector, stay tuned to their investor relations page and follow their latest news.
This announcement is an summary of the news from the company approved ASX announcement on 02/4/24