- CCI approved upGrad's acquisition of Sorting Hat Technologies, Unacademy's parent company
- The deal involves a 100% share swap and merger with upGrad Education Private Limited
- Unacademy CEO Gaurav Munjal will continue leading post-merger and focus on product growth
Fair trade regulator CCI on Tuesday cleared upGrad Education's proposed stake acquisition in Sorting Hat Technologies, the parent company of Unacademy, and their subsequent merger.
The approval comes nearly four months after Unacademy co-founder and Chief Executive Officer (CEO) Gaurav Munjal announced that both companies had signed a term sheet for upGrad to acquire Unacademy in a 100% share swap deal.
"The proposed combination relates to the acquisition of shareholding in Sorting Hat Technologies Private Limited (Target) and its merger with and into upGrad Education Private Limited (Acquirer)," the Competition Commission of India (CCI) said in a release.
Mumbai-headquartered upGrad Education has a presence across the formal and non-formal education segments, while Bengaluru-based Sorting Hat Technologies Pvt Ltd operates in the non-formal education space through online learning platform Unacademy.
"Commission approves the acquisition of certain shareholding in Sorting Hat Technologies Private Limited and its merger with and into upGrad Education Private Limited," the Competition watchdog said in a post on X.
In March this year, Munjal, in a post on X, said: "Unacademy and upGrad have signed a term sheet for upGrad to acquire Unacademy in a 100% share swap deal".
He added that the valuation of the transaction would be disclosed only after the deal closes and the necessary filings are made.
Munjal further stated that he would continue as co-founder and CEO of Unacademy and focus on building online education products for learners in India and overseas.
Meanwhile, upGrad co-founder Ronnie Screwvala had also confirmed the all-stock transaction, saying Munjal would continue to lead Unacademy following the acquisition.
In a separate release, the anti-trust regulator also approved the merger of 51 Malabar Group's companies with and into Malabar Gold and Diamonds Ltd.
Malabar Gold and Diamonds Ltd, the flagship company of the Malabar Group, is engaged in the manufacturing, trading, retailing, wholesaling, import, export and distribution of gold, diamond, silver, platinum and other jewellery products.
Deals beyond a prescribed threshold require approval from the competition regulator to ensure they do not have an adverse impact on competition in the market.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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