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New Delhi, Sept. 10 Educomp Solutions Ltd has said it will buy a 50 per cent stake in pre-school chain EuroKids International Pvt Ltd for Rs 39 crore. The two companies will combine together to build a network of 1,000 pre-schools in India over the next three years.

The agreement includes the purchase of existing company shares and an infusion of additional capital into EuroKids for future expansion. The agreement also has a provision for Educomp to increase its stake in stages to 74 per cent over a period of time

The buy will immediately add to Educomp’s earnings per share, said the Educomp Chief Financial Officer, Ms Sangeeta Gulati.

Mr Shantanu Prakash, Managing Director, Educomp Solutions Ltd, said, “Educomp has made a strategic investment in EuroKids to leverage the company’s established presence in early child care education.

“We see immense potential in the early child care education market in India which is highly underserved. Our partnership will also enable EuroKids to accelerate its growth process and together we intend to build an institution of exceptional quality.”

Mr Uday Mathur, Managing Director, EuroKids International Pvt Ltd, said, “Progressively more parents in India understand the need of early child care and education and this segment is growing rapidly in India. Our partnership with Educomp Solutions will provide our combined resource pool an opportunity to bring in the best teaching aids and solutions to children across the country.”

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