Assessment service buys eNVQ
Article Date: May 31 2007Education Development International (EDI), a provider of accredited qualifications services, has bought eNVQ, a developer of a web-based corporate assessment system. The potential value of the deal is £6.8 million.
The consideration was satisfied through almost a million shares, worth £280,000, and £1.5 million in cash. The terms of the deal include a deferred consideration capped at £5 million. This sum is conditional upon revenues in the next four years and is to be satisfied in cash and shares.
The deal strengthens EDI’s business as a provider of technology-based qualification and assessment services. It will now sell eNVQ’s system.
eNVQ’s operations will relocate to EDI’s head office with one of its two founders joining the acquirer. The other selling shareholder has been retained as a consultant.
Oxford-based eNVQ’s system is used by more than 100 training organisations, further education colleges, companies and public authorities who operate government funded apprenticeship programmes and vocational qualifications.
In the year to May 2006, eNVQ had unaudited pre-tax profits of £49,000 and turnover of £443,000.
