Eye on the edtech sky: Byju's to acquire Aakash Educational Services for $1 billion

Aakash will continue to operate as a separate entity after the acquisition

Ed-tech company BYJU’S, on Monday, announced a deal to acquire Aakash Educational Services Limited (AESL), a provider of test preparation services.

After the integration, BYJU’S will make further investments to accelerate Aakash’s growth.

The deal is worth close to $1 billion (about Rs 7,300 crore) - making it the biggest acquisition by Byju's to date, PTI reported quoting sources.

With over 33 years of experience, Aakash has built a learning ecosystem that has helped millions of young aspirants get into the country's best institutions. In 2019, AESL partnered with Blackstone to create India’s largest digitally enabled, omni-channel test preparation company. Under the leadership of its Founder J C Chaudhry and Aakash Chaudhry, it will continue to function independently, the company said in a statement.

Also Read | Byju’s to pay $1 billion for Blackstone-backed coaching institute Aakash: Report

Byju Raveendran, Founder and CEO of BYJU’S said, “Our complementary strengths will enable us to build capabilities, create engaging and personalised learning programs. The future of learning is hybrid and this union will bring together the best of offline and online learning, as we combine our expertise to create impactful experiences for students.”

Aakash Chaudhry, Managing Director, AESL said “At Aakash, we are looking to transform student experiences by steering innovative and digitally-enabled learning solutions. Together with BYJU’S, we will work towards building an omni-channel learning offering that will accelerate test-prep experience to the next level.”

Aakash will continue to operate as a separate entity.

The addition of Aakash is a significant step towards strengthening BYJU’S product offering. It reiterates the company’s focus on creating impactful learning products for students by adding more verticals, subjects, and languages to the same platform.

Amit Dixit, Co-Head of Asia Acquisitions and Head of India Private Equity at Blackstone, said “We invested in AESL because it is one of the leading education brands in India with a professional management team, best-in-class corporate governance and a 33-year track record of exceptional results.”

“The combination of Aakash and BYJU’S is highly synergistic and we are excited to help build India’s largest education company,” he added.

With over 215+ centres, Aakash provides test preparatory services to students preparing for medical and engineering entrance exams, school/board exams, KVPY, NTSE, Olympiads, and other Foundation level exams. Known for its integrated teaching methodology and focused learning environment, Aakash has built a tradition of excellence and has helped millions of students embark on successful learning journeys.

Launched in 2015, BYJU’S is the leader in offering personalised learning programs for school students in India.

EY was the exclusive financial advisor for BYJU’S on this transaction. Phoenix Advisers was the exclusive advisor for the AESL.

(With inputs from PTI)