homebusiness Newscompanies NewsNIIT eyes 20% revenue and margin growth in corporate learning biz after acquiring St Charles Consulting
NIIT eyes 20% revenue and margin growth in corporate learning biz after acquiring St Charles Consulting
US-based St Charles Consulting Group's acquisition helps NIIT add a significant presence in the professional services and management consulting sectors while strengthening its fast-growing learning consulting practice, the company said.
Talent development company and training services provider NIIT said its newest acquisition, US-based St Charles Consulting, will become part of its corporate learning group, Sapnesh Lalla, CEO and Executive Director of NIIT, said on Monday.
He said the corporate learning group business has over the past few years witnessed margin growth in the 20-plus percent range and in the long-term view, it expects both revenue and margin to see about 20 percent growth.
“This business (St Charles Consulting) is going to be in line with the corporate learning group business metrics. So it will be accretive from a margin perspective as well as EPS perspective. From day one, St. Charles will get fully integrated into NIIT’s numbers as well as the corporate learning group’s numbers,” he told CNBC-TV18 in an interview.
Lalla’s remarks come after NIIT acquired St Charles Consulting Group for a "fixed consideration" of $23.4 million (about Rs 192 crore) on Saturday. The Illinois-headquartered firm is a provider of consulting, design, and implementation solutions for strategic learning programmes to professional services firms and Fortune 500 companies.
The acquisition helps NIIT add a significant presence in the professional services and management consulting sectors while strengthening its fast-growing learning consulting practice, the company said.
Lalla pointed out that 12 of the top 15 strategy and management consulting companies are St Charles Consulting’s customers.
“These companies are known to spend more than 2.5 times of what an average company spends on their learning and development (L&D). So a very lucrative set of customers. This is a segment where NIIT had not penetrated fully in the past and so most of their customers will be first-time customers and will have an opportunity to get a stronger and wider range of services,” he said. There is an opportunity to expand the share of wallet for St. Charles customers by including NIIT services, he added.
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