IT training company NIIT had sold its US-based subsidiary, Element K Corporation, to SkillSoft Corporation for $110 million in an all-cash deal. NIIT had acquired the 700 employee strong Element K for $35 million in 2006. The company has also entered into a long-term services and licensing agreements with SkillSoft to work together for producing new content for SkillSoft’s e-learning content collections for Business, IT and Desktop skills. The funds from the deal would be used to strengthen NIIT’s four platforms — MTS, cloud campus, private school venture (NGuru) and University programme (YuvaJyoti).
As of March 31, 2011, Element K contributed about $86 million in NIIT’s total revenues and had 548 employees. The two companies have worked together in the past on multiple product development initiatives to create e-learning products. In addition, the two companies intend to collaborate on R&D initiatives for technology-enabled learning and performance support.
