Dev Clever signs first phase of ‘tactical’ partnership with Aldebaron
(DEV ) said the first phase of the tactical partnership with Aldebaron DMCC has been signed ahead of the launch of the National Careers Challenge in the UK this month.
Back in June 2021, shares in Dev Clever jumped after it unveiled a ‘breakthrough’ tactical partnership expected to deliver a minimum of $50m in revenues over the next four years.
The education-focused technology company partnered with Aldebaron DMCC, a Dubai-based organisation which is focused on distributing and implementing consumer facing technology and next generation impactful digital solutions into emerging markets globally.
The partnership will enable Dev to accelerate a global rollout plan across Asian territories, starting in India in partnership with NISA and then extending across Indonesia, Thailand, Singapore, Malaysia, Philippines and into the Middle East and Africa in the next three years.
The contract with Adebaron is set to earn Dev Clever $5 million in 2021, $10 million in 2022, $25 million in 2023, and $20 million in 2024 (each for the financial years ending 31 October).
In addition, and as part of the partnership, Dev Clever said Aldebaron DMCC also has the option to acquire 7 million Dev Clever shares at nominal value over the next six months.
Aldebaron also has warrants to purchase 60 million of Dev’s shares at 60p each over the next three years after signing the tactical partnership’s definitive documentation, it added.
Under the terms of the partnership and as part of the first implementation phase, the National Careers Challenge ("NCC") will be launched in the UK on 30 September 2021, it said today.
It said plans for an Indian NCC are anticipated to be finalised in 4Q21 for full scale launch during 1H22 while Aldebaron’s initial platform capabilities are expected to go live in 4Q21.
CEO, Chris Jeffries commented: "I am delighted to confirm that documentation for the first phase of our exciting partnership with Aldebaron is now complete. The rollout will generate minimum guaranteed revenues of US$50 million for Dev Clever over the next 4 years and we are excited about the imminent UK launch of the NCC at the end of September."
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In July 2021, Dev said it had successfully acquired the UK-based educational business, The Inspirational Learning Group Limited ("TILG") for a cash consideration of £129,200 and the issue of 6,994,177 new ordinary shares in Dev, subject to a phased two-year lock-in period.
The Company told investors that it believes the activities of TILG will complement its existing career guidance and development platforms and enhance the Company's content offering.
Dev added that it is committed to delivering an NCC programme in India, where it has an existing partnership with the National Independent Schools Alliance ("NISA"), in 1H22.
As part of its previously outlined strategy, Dev Clever expects to use the Career Challenge initiative to enter additional large emerging market territories over the next three years.
In recent weeks, Dev Clever said in its 1H21 results that it had continued to make “material and incremental progress” over the period with revenue soaring 531% from £0.38m in 1H20.
The education-focused technology firm said its revenue increase of 531% to £2.4 million from £0.383m in 1H20 was supported by ‘significant contract wins’ in the Educate division.
Looking ahead, Dev Clever highlighted that the EdTech market ‘remains robust’. It said it believes there is “a globally growing need and demand for more effective careers platforms that can engage young people and connect them directly with their future employers.”
In particular, RBSA Advisors said the Indian EdTech market is poised to transform from a $700-800m market to a $30bn in size in the next 10 years. Furthermore, a report highlighted the EdTech industry has already received $1.4 billion in investment by October 2020.
Looking ahead, and as a result of its strong performance, the company believes it is 'very well placed to exceed management's expectations for the full year ending 31 October 2021.'
Shares in Dev Clever have nearly doubled in value since the beginning of 2021. The stock was trading 4.76% higher this morning at 33p immediately following the announcement.
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