EuroKids International Private Limited (“EIPL”) and Educomp Solutions Ltd. ( “ESL”) (BSE: Educomp) today announced that the companies have entered into a 50-50 strategic partnership. The agreement includes the purchase of existing company shares as well as an infusion of additional capital into EuroKids for future expansion. The agreement has also a provision for ESL to increase its stake in stages to 74% over a period of time.

EuroKids International, the leading provider and specialist in pre-school education in India and Educomp Solutions Ltd, a globally diversified education solutions provider and the largest education company in India, will combine together to build a network of 1000 Pre-Schools in India over next 3 years. The combined partnership is uniquely positioned to cement EuroKids International’s leadership position in the early child care space in India and further accelerate its growth and presence both in India and Worldwide

Educomp Solutions Limited, founded in 1994 is a globally diversified education solutions provider and the largest education company in India. Mr. Shantanu Prakash, Managing Director, Educomp Solutions Limited, said, “Educomp has made a strategic investment in EuroKids to leverage the company’s established presence in early child care education. We see immense potential in the early child care education market in India which is highly under served. The EuroKids Group is one of the largest companies in this space and has an excellent reputation for quality . Our partnership will also enable EuroKids to accelerate its growth process and together we intend build an institution of exceptional quality.”

Following this development, Mr. Uday Mathur, Managing Director, of EuroKids International Private Limited, said, ”Progressively more parents In India understand the need of “Early child care and education” and this segment is growing very rapidly in India. Our partnership with Educomp Solutions will provide our combined resource pool, an opportunity to bring in the best teaching aids and solutions to children across the country.”

Mrs. Sangeeta Gulati , Chief Financial Officer, Educomp Solutions Limited, said “We are glad to partner with the management of EuroKids.. With this alliance children at EuroKids will now have a seamless growth path within the Educomp network growing from pre-school to high school to vocational and professional education. The pre-school sector is estimated to have a potential market of over 15,000 + organized preschools in India and is a US$ 1 billion opportunity This investment is also immediately EPS accretive for our shareholders”

By combining with Educomp Solutions, EuroKids International will expand its combined revenue base and create an entity with significantly greater financial scale and resources. Educomp will also bring to EuroKids its vast IP resources and reach across the country as well as abroad.

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