Demos, one of the leaders in continuing vocational training in Europe, has today announced the acquisition of the Czech company Pragoeduca. With this acquisition, Demos is continuing with its strategy of deployment in Europe and development of its international client base.
 
Pragoeduca was set up in Prague in 1990 and established itself as one of the leaders in continuing vocational training in the Czech Republic. Its business model combines inter-company training, intra-company training, e-learning and publishing. As a player on a fragmented market made up mainly of small structures, Pragoeduca enjoys numerous advantages: 

         An excellent reputation and expertise drawing on 18 years’ experience,
         A network of 150 external participants,
         A wide-ranging catalogue of 400 seminars,
         A 3000-strong client base with low concentration,
         A range of e-learning products and services through its EMU software which already has 500 client companies with approximately 2,400 users and with a 99% subscription renewal rate.
 
The company is highly profitable and had turnover of approximately 1 million euros in 2007.
 
The integration of Pragoeduca into the Demos group will be facilitated by the great similarity of the business models. In addition to this, Demos could significantly encourage the development of this structure by expanding its range of products and services and allowing it to draw on the group’s international client base. Finally, Pragoeduca will be operating on a booming and very fast-growing market sustained by the economic dynamism of the Czech Republic.
 
This acquisition is perfectly in line with the selective strategy of acquisitions implemented by Demos:
        A player firmly established on its own market
        A profitable company with real potential for growth
        A healthy, sound financial structure
        An accretive operation
 
The operation involves the acquisition of 100% of Pragoeduca shares, for an undisclosed sum paid entirely in cash.
 
Jean Wemaëre, CEO of Demos, comments: “With the acquisition of MOS, the Swiss publisher of e-learning tools, less than two months ago, we have strengthened our ability to manage and distribute educational content. The acquisition of Pragoeduca confirms our desire to consolidate our international presence and our ambition to become the European leader in operational knowledge. As we already have a base in Poland, this operation in the Czech Republic allows us to continue rolling out our business in Eastern Europe and it also opens up development prospects in Slovakia. We will also be able to capitalise on our experience of the Polish market in order to obtain projects supported by the European Social Fund (ESF). Finally, the integration of Pragoeduca into Demos will be facilitated by the close resemblance between our business models which will help to bring about immediate synergies». 
 
About the Demos group
 
A leading player at the heart of the operational knowledge economy
The Demos group is one of the leaders in continuing vocational training in Europe. Drawing on its business, which is continuing vocational training in all its forms (face-to-face and distance education), Demos has developed innovative, complementary methods of education such as e-learning. Other activities linked to the knowledge economy also enhance the group’s range of products and services, including skills management consulting and the distribution of educational content. 
 
A successful business model which can be replicated internationally
Demos is based in 14 countries and in the major French towns and cities and has managed to implement an effective policy of external growth which means that the group can now support its clients internationally and develop a local client base. On a fast-growing market, the diversity of its range of products and services, its high quality demands, a constant search for innovation and a flexible, high performance business model have made this group into the second largest French player in education and training.
 
Steady, profitable growth
The Demos group had turnover of 58.5 million euros in 2006, growth of 45% compared to 2005, with earnings before tax of 5.1 million euros and a group share net result of 2.3 million euros. Turnover stood at 36.1 million euros in the first six months of 2007, with earnings before tax of 1.8 million euros and a group share net result of 0.35 million euros.