NetDragon Websoft Holdings Limited plans to spinoff its education business for the growth of MYND.AI, an independent, education technology-focused company. This deal is expected to close by the end of Q3, subject to regulatory approval.
NetDragon Websoft to Spinoff Education Business for MYND.AI Growth
Upon completion of the transaction, NetDragon will own 72.9% of the issued share capital of Global Education Technology Holdings Limited (GEHI). GEHI, in turn, will own 100% of the subsidiaries that operate the NetDragon Education Business. GEHI will be valued at US$50 million in the merger transaction.
The spinoff of the NetDragon Education Business will enable MYND.AI to have its independent board and management team comprised of world-class leaders with track records of driving shareholders’ value. The deal will require GEHI to divest all existing businesses except for its Singapore education business, which is profitable and expected to continue to generate stable cash flow.
Benefits of Independent Board Governance for MYND.AI
The independent board governance of MYND.AI will provide the company with a public market vehicle to broaden financing alternatives, such as raising capital from strategic investors, and a plan to complete a registered follow-on offering to strengthen the capitalization of the company. The spinoff will enable MYND.AI to have a greater strategic and operational focus while unlocking value as an NYSE listed company.
It will also allow MYND.AI to grow its global education business sustainably, while ensuring compliance with all relevant regulations. The increased focus on educational technology solutions will generate innovative solutions that transform teaching and learning, with the incorporation of artificial intelligence into their products. This will add true education value by leveraging the investment in AI technology and their deep understanding of the educational needs of their users.
MYND.AI Focuses on AI-Enabled Classroom Technology and Global Expansion
The category dominant leader in the AI-enabled classroom technology space, MYND.AI aims to be at the forefront of integrating AI into their products that will add true education value. While they have a concrete roadmap to launch their AI-enabled panels in the near future, they are already pushing forward the practical use of AI in education. With their mission to provide teachers and students with a superior interactive experience and the most effective learning outcomes, they will bring the best-in-class integrated blended learning solutions to every school worldwide.
Dr. Simon Leung, Vice Chairman of NetDragon and Chairman of MYND.AI, said, “We believe we are well ahead of the market in pushing forward the effective and practical use of AI in education, especially in the classroom. As we execute our plan to transform education with AI, this spinoff transaction will provide the right platform for the MYND.AI team to pursue our goal. We are excited about our path ahead, and I want to thank our shareholders for their support as we continue to embark on this journey together.”
This exciting new chapter will build on our mission to remain the market leader in technology-enabled classrooms. In particular, we are excited about the opportunity to be at the forefront of integrating AI into our products that will add true education value, leveraging not just our investment in AI technology but also our deep understanding of the educational needs of our users gathered over 20 years of delivering classroom technology solutions.
Vin Riera, CEO of MYND.AI
MYND.AI will continue to develop and scale their educational technology solutions globally, transforming teaching and learning with AI-enabled classroom technology.