Business Connexion and ATIO have concluded a joint venture deal valued at R70 million, whereby ATIO's Netcampus division acquires Business Connexion's Learning Solutions business unit in exchange for 50% plus 1 share in the share capital of 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.
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. 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.
ATIO's contribution to the joint venture will be its Netcampus business, specifically its intellectual property, while Business Connexion will contribute its Learning Solutions business, creating a 50/50 joint venture.
The Netcampus joint venture board will consist of representatives from both ATIO and Business Connexion. In terms of the deal, Business Connexion 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, SETA accredited and has partner agreements with other key suppliers of e-content in South Africa." said Jane Canny, Group Executive: UCS Division, responsible for Business Connexion Learning Solutions.
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. In South-Africa, it is foreseen that online learning will grow to 70% in 2018.
"Netcampus has designed and developed one of the most innovative learning platforms in the market to help organisations build a learning orientated workforce that is adaptable and responsive to the demands of the globalised economy. Our goal has been to develop and use the most advanced technology to build effective and efficient learning solutions and services that will meet the demands of today's organisations", says Chris Van der Sande, ATIO CEO. "The JV achieves much better critical mass as a business by combining customer bases, IP, management and staff, which will undoubtedly benefit all stakeholders going forward."
The JV aims to be the leader in the adult e-learning community in Africa by 2017.
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