Business Connexion (BCX) and ATIO have inked a joint venture deal, valued at R70 million, in which ATIO's Netcampus will buy BCX's Learning Solutions business unit for 50% and a share in Netcampus.
"The merged businesses will create a more sustainable, future-oriented learning platform, using the latest software and hardware technology to support individual and organisation learning for the Business Connexion group, ATIO and their respective customers," says BCX in a statement.
The joint venture follows a year-ago deal in which ATIO bought BCX's Avaya assets for an undisclosed amount. As part of that deal, ATIO would partner with BCX to provide Avaya solutions to its customer base.
BCX says the joint venture aims to be the leader in the adult e-learning community in Africa by 2017. "The idea of forming a joint venture makes good business sense, as Business Connexion, Learning Solutions and Netcampus have already been working closely together over the past two years," says BCX.
The Business Connexion Learning Solutions business unit was created to form a consolidated learning business unit to service the needs of the Business Connexion group and its customers - Netcampus' solutions and team will enhance Business Connexion Learning Solutions' delivery capability, it adds.
ATIO's contribution to the joint venture will be its Netcampus business, specifically its intellectual property, while BCX will contribute its Learning Solutions business, creating a 50:50 joint venture. The joint venture board will consist of representatives from both ATIO and BCX, but BCX will have management control.
"The merger with Netcampus will not only give Business Connexion Learning Solutions joint ownership of the Netcampus e-learning platform, but also a business that is recognised in the Microsoft training industry. Netcampus is a Gold Microsoft Learning Partner, is SETA-accredited and has partner agreements with other key suppliers of e-content in SA," says Jane Canny, group executive for the UCS Division, which is responsible for Business Connexion Learning Solutions.
The listed company bought four UCS companies in 2011, paying R614.2 million for Accsys, CEB Maintenance Africa, Destiny Electronic Commerce, UCS Solutions and UCS Technology Services, before selling Destiny to VeriPhone, for R255 million.
BCX says the demand for online learning is growing at a five-year compound annual growth rate of 12.8%. The Ambient Insight Report predicts that e-learning will become the third most used application after e-mail and the Internet, it adds.
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