January 31, 2022
Skillful Craftsman Education Technology Ltd. (EDTK: NASDAQ), an education technology company, announced that it has entered into a capital transfer agreement with certain shareholders of Wuxi Talent Home Information Technology Co., Ltd., a flexible recruitment platform, to acquire 60% of attendance.
The transaction has been unanimously approved by the Company’s Board of Directors and is expected to close by February 28, 2022.
Skillful Craftsman agrees to acquire Wuxi’s stake for consideration consisting of 15 million RMB (2.35 million USD) in cash and 791,667 newly issued ordinary shares of the company.
According to Skillful Craftsman, the acquisition should expand the company’s online business presence and professional training activities, and provide the company with a solid footing in the regional flexible workforce market.
Founded in 2007, Wuxi Talent is described as one of the first third-party part-time service platforms with a crowdsourcing model in China and one of the largest flexible recruitment platforms in Jiangsu Province.
Xiaofeng Gao, Chairman and Co-CEO of Skillful Craftsman, said, “We are excited to continue working with WTH since our strategic partnership in August 2021. The vocational education and flexible staffing markets demonstrate a strong trend continues as the Chinese government issued a set of guidelines on promoting the development of high-quality vocational education in 2021, and the flexible staff market in China was around 648 billion RMB (101 .86 billion USD) in 2020, and will grow at a compound annual growth rate of 25% from 2020 to 2025, according to a research report from iResearch.
“This acquisition represents another crucial step in fueling the company’s next stage of development in growth markets,” Gao continued. “With WTH’s expertise and resources, we will gain access to the flexible staffing market and expand our ability to provide high quality vocational education services. Talent and employers on the WTH platform will also benefit from our professional training. The acquisition of the majority stake in WTH will also provide the company with a solid foundation for our planned in-depth cooperation strategy with offline colleges and universities.
Gao added, “We believe we can generate significant revenue and create greater value for our shareholders through this acquisition. We look forward to working with WTH to lead the development and growth of the flexible workforce market.”
Skillful Craftsman is an educational technology company that provides online interactive job training and virtual simulation experiential training courses. The Company started operations in Wuxi, China in 2013.