Demos, one of the leading players in continuing education in France and Europe, today announced the purchase of a 51% stake in Swiss company Sauter Training et Simulation SA (“STS”). This acquisition forms part of Demos' strategy to step up development of its product range in high-potential market segments like e-learning.
Based in Lausanne, Switzerland, STS is specialising in developing project-management training products. It develops and sells educational software, and offers a programme of corporate training and coaching sessions. STS was set up in 1996, and now leads the Swiss market. It sells its products in more than 35 countries in Europe, Asia, North America, Africa and the Middle East, through a large network of partners. STS' e-learning products have already been translated into 14 languages, giving it strong international growth potential.
The market for e-learning and project-management training is seeing constant growth, and STS has the best distance learning tool in this area.
STS offers high-tech, high-quality products, some of which lead their segment and have no equivalent in the global market. The product range features:
- educational software, including "serious games" such as project-management training simulator SimulTrain, and e-learning modules combined with assessment and testing systems that measure the effectiveness of e-learning;
- a "blended learning" programme, combining classroom-based training with e-learning;
- a range of educational software that helps users prepare for project-management certification tests.
STS is entirely self-financed, has a strong financial position and has never made a loss in its 12-year history. The company currently has 10 permanent employees and generated revenue of over 3 million Swiss francs in 2008. It is generating constant growth, and has doubled its sales in the last three years. STS' operating margins are wide, and indeed wider than those of Demos Group.
Terms of the transaction: Demos is acquiring a 51% stake in STS SA immediately, for an undisclosed sum. The contract also allows Demos to acquire the remaining 49% in the next 24 months. STS will continue to be managed by its founder, Roland Sauter.
By integrating STS, Demos is adding to its existing portfolios in both e-learning and project-management training, in which both Demos and STS are accredited by the two largest certification organisations (AFITEP and PMI). In January 2008, Demos acquired another Swiss company, MindOnSite (MOS). This deal gave Demos a strong e-learning platform and enabled it to put together a genuine e-learning offering in the business software market.
The STS deal will also boost Demos' new e-learning offering, which will be launched and presented at the iLearning Forum on 19 and 20 January 2009. This collection of training tools offers e-learning solutions suited to the needs of companies, with 1,400 modules in 70 theme areas. Details of the range will be provided in the 19 January 2009 press release.
Jean Wemaëre, Demos' Chairman and Chief Executive Officer, made the following comments: "This acquisition is fully in line with Demos' development strategy. STS offers obvious synergies with Demos in terms of both its business model and content. The quality of STS' products and the expertise of its staff, combined with the technology developed by MOS and the skills of our own e-learning teams, mean that Demos is now one of Europe's leading players in the e-learning segment, which already accounted for more than 10% of Demos' revenue in the first half of 2008. In addition, our network of subsidiaries in more than 16 countries should enable us to achieve more effective marketing of STS' products, which currently have no equivalent in the continuing education market. In this way, we hope to boost the impressive and consistent growth achieved by STS in the last few years. We will also use STS' network of distributors in 35 countries to extend the reach of all Demos Group products. The acquisition therefore fits perfectly with our strategic objectives as regards international expansion and innovation in the field of e-learning, which many studies have predicted will see strong growth in the next five years."
Next financial event:
April 2, 2009: 2008 full-year results
About Group Demos
A reference player focussed on operational skills and the economics of knowledge
Demos Group is a global player in continuing education. Based on its core business, continuing education in all its forms (actual person to person training and distance learning), Demos has developed innovative and complementary training methods such as e-learning. Other activities relevant to the economics of knowledge also enrich the Group’s offer, and in particular competencemanagement consultancy and the distribution of educational content.
An activity whose model is a success and can be duplicated outside France
Demos is present in 16 countries and in France’s major towns. The Group has successfully combined substancial organic growth with an efficient external growth policy, which now enables it to both offer its existing clients support outside France as well as to develop new local international clients. The Group’s market is flourishing, its offer is diversified, its standards in terms of quality are high, it is permanently innovating and the business model is both flexible and high-performance, all of which render this Group one ofthe reference players in vocational training.
Regular and profitable growth
In 2007, Demos Group generated revenue of 78.3 million euros, a 34% growth compared to 2006, for an operating income of 7.4 million euros and net income group share of 3.7 million euros (after €0.8m amortisation of goodwill).
Contacts:
Kaélia
Cécile Sornay
Financial communications Advisor
Tel : + 33(4) 72 00 46 54 or cecile.sornay@kaelia.fr
Demos Group
Emmanuel Courtois
Chief Financial and Administrative Officer
ecourtois@demos.fr