Demos, one of the leaders in continuing vocational training in France, has today announced the acquisition of the Swiss company MindOnSite (MOS). This acquisition fits perfectly into Demos’ strategy, both by speeding up the company’s development in Europe and by allowing the group to take up a position on the e-learning software market.
The company, which specialises in e-learning and is based on the shores of Lake Geneva, publishes and distributes a software solution called MOS Chorus which aims to make it easier to design educational e-learning content and to distribute it online. MOS Chorus is one of the leading LCMSs (Learning Content Management Systems) both in France and in Switzerland. MindOnSite was set up in 2001 and enjoys an excellent reputation, with prestigious clients among the major international organisations, corporate clients (Air France, CNP, Orange, SFR, AGF, Nestlé, Sanofi-Aventis, etc.), as well as government bodies (State of Geneva, etc.) and universities (Paris I, etc.) The company had turnover of approximately 1.3 million Swiss francs in 2007.
These closer ties provide Demos with a high level e-learning platform and allow the group to take up a position on the corporate e-learning software market.
This acquisition will enhance Demos’ range of e-learning products and services, which had already been consolidated by the acquisition of the E-learning Agency in 2005. Indeed the e-learning department is a vehicle for growth and is now generating almost 10% of the group’s turnover.
How the operation will work
Demos is immediately acquiring 51% of the shares in MOS in cash for an undisclosed sum; the contract of transfer makes provision for the acquisition of the remaining 49% by 2009 / 2010. Elodie Primo Amado, the joint founder of MOS, will be staying on as the company’s Managing Director.
Jean Wemaëre, CEO of Demos, comments: “This acquisition is perfectly in line with our ambition to become the European leader in operational knowledge and is beneficial to the group in a number of ways. First of all it allows us to speed up our deployment in Europe by gaining a foothold on the Swiss market where we can draw upon MOS' client base. Indeed, Demos is already successfully distributing MOS products in France and could now extend this distribution across all of the territories in which the group operates. In addition to this, acquiring software capacities will give Demos technology allowing it to speed up the production of standard e-learning modules. Finally, this acquisition will benefit all of the group’s business units by allowing the setting up of virtual training centres which are accessible to any clients who may wish to use them. So this value-creating operation means that we at Demos are continuing with our strategy of accelerating our growth”.
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 France. Drawing support from its core business, Demos has developed innovative, complementary training methods 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 the group's knowledge.
A successful business model which can be replicated internationally
Demos is based in 13 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.