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Janison Education (ASX:JAN) to acquire top-ranked assessment developer

Education
ASX:JAN      MCAP $59.77M
11 October 2021 15:30 (AEDT)
Janison Education (ASX:JAN) - CEO, David Caspari

Source: Janison Education

Janison Education (JAN) has entered an agreement to acquire Quality Assessment Tasks (QATs).

QATs develops and sells assessments and non-assessments tasks, such as case studies and practical assignments, to schools across Australia for students in years 11 and 12.

The assessments provide students with practice materials and resources so they can prepare for end-of-year exams. The assessments are created digitally and sent electronically to teachers and schools across the country.

QATs also has a significant market presence with an approximate 50 per cent national market share of the roughly 2800 secondary schools across Australia.

Janison has agreed to pay a total consideration of $2 million to acquire QATs. Of this, $1.25 million will be paid in cash upfront upon completion and the remaining amount will be deferred for one year and is contingent upon achieving a certain revenue target in FY22. The total consideration will be funded from Janison’s cash balance.

Janison Managing Director David Caspari commented on the deal.

“Ever since our acquisition of ICAS in 2020, our business has been on a journey to accumulate a suite of world-class assessments for the schools’ market, allowing Janison to pair its tried-and-tested assessment platform technology with a broad content portfolio of school products.”

The company believes this acquisition will expand its presence in Australian schools and broaden its product offering by bringing in a suite of well-regarded assessments from a reputable brand.

The buy also introduces over 250 skilled test writers and reviewers which supports Janison’s strategy of developing and revamping its digital library of assessments and resources.

Company shares were up a slight 1.05 per cent to close at 96 cents.

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