Tag: 2020

Sydney, Wednesday, 9 September 2020 – Navis Capital Partners (“Navis”) confirmed it has signed definitive documentation to sell its interest in the Australian operations of Modern Star (“Modern Star”) to Pacific Equity Partners (“PEP”), an Australia based private equity firm.

The transaction values Modern Star at an Enterprise Value of over A$600 million with key senior management reinvesting in the business. The transaction is expected to close in Q4 2020.

Modern Star is a digitally enabled e-commerce provider of educational resources to Australian early childhood centres and schools with a 60+ year heritage. The business is the outright market leader with a one-stop shop offering of 30,000+ SKUs across Australia and New Zealand.

Modern Star was acquired from founders in September 2014 in a transaction that valued the business at approximately A$215 million. Since then, Navis has been instrumental in transitioning the business from a traditional B2B supplier to a digitally enabled e-commerce provider of education resources, which has allowed Modern Star to consistently grow at ~9-10% p.a. organically compared to market growth of ~5% p.a. Key operational initiatives included sales force investment to drive growth into a new channels, supply chain efficiencies and an organisational restructure. During its hold period, Navis also assisted management with 9 strategic bolt-on acquisitions which accelerated expansion and step-changed market share.

As part of the transaction, Navis will retain its stake in Modern Star’s China business (“Wisdom”). Navis continues to see strong long-term prospects for the business as the Chinese early childhood education sector continues to recover strongly from COVID-19 and Wisdom’s premium brand position will likely benefit from any consolidation in the market.

Philip Latham, Head of Navis Capital Australia, commented: “When we invested in Modern Star our objective was to leverage Modern Star’s platform to reach almost every K-12 educational institution in Australia, grow share of wallet and double its market share, which we have successfully accomplished. The business also performed strongly during COVID-19, demonstrating the resilience and diversification of the B2B platform. We wish the management team all the best as Modern Star embarks on the next phase of its growth journey with PEP. As for Wisdom, we continue to see strong growth prospects for the brand and the long-term macro thematics underpinning the kindergarten sector in China.”

Peter Boyd, who joined Modern Star as CEO in 2017, will continue in his role under new owners PEP. Mr Boyd commented: “We are proud to be the market leader in the Australian education resources sector and believe the last 6 years with Navis has set a strong platform for future growth. We thank Navis for their guidance and stewardship of the business as many growth and operational efficiencies were successfully implemented under their strategic direction. We are also impressed by PEP’s deep understanding of the education sector and firmly believe they share our passion for providing teachers with high-quality educational resources that drive learning outcomes and we look forward to a strong partnership.”

Navis is being advised by Luminis Partners, Morgan Stanley, Herbert Smith Freehills and EY.

About Modern Star

Modern Star is a digitally enabled e-commerce provider of educational resources to Australian early childhood centres and schools with a 60+ year heritage. The business is the outright market leader with a one-stop shop offering of 30,000+ SKUs across Australia and New Zealand. Modern Star comprises two main divisions, being:

• Education: leading provider of education resources in ANZ, with an unrivalled track record in product curation and innovation. The Education division sells a range of 25,000+ products to early childhood centres, primary schools, high schools and out-of-hours school care centres; and,
• Wholesale: market leader for supplying educational toys to specialty wholesale and independent customers, with exclusive rights to 40+ of the “world’s best” toy brands and 5,000+ products.

About Navis Capital Partners Limited

Founded in 1998, Navis manages approximately US$ 5 billion and focuses on investments primarily in and around Asia. Navis contributes both capital and management expertise to a limited number of well-positioned companies with the objective of directing strategic, operational and financial improvements. Navis has one of the largest private equity professional teams in Asia, comprising over 60 individuals, supported by over 30 administrative staff, in six offices across the region. Navis has a long and proven track record in pan-Asian private equity, with over 80 control transactions across the Asian region completed since its establishment.

Contact details: Navis Capital Partners

Kuala Lumpur, 4 August 2020 – Navis Capital Partners (“Navis”) announced that it has completed the sale of its controlling stake in Strateq Sdn Bhd (“Strateq”), a leading Malaysiabased data-driven business solutions and information and communications technology (ICT) company with a growing international presence, to an indirect subsidiary of StarHub Ltd (“StarHub”), a leading telecommunications company listed on the Singapore Exchange.

Navis acquired a majority stake in Strateq in 2013 and subsequently injected additional capital for a total investment of MYR 61.5 million. At completion, Navis received MYR 137 million for its stake with a further MYR 30 million payable based on Strateq’s performance in 2021.

Established in 1988, Strateq designs and delivers data-driven digital solutions to serve enterprise and public sector customers across Malaysia, Singapore, China, Hong Kong, Thailand and the United States. Strateq focuses primarily on healthcare information systems, managed services for retail fuel payment solutions, cloud services, data analytics, data centre services and IT infrastructure projects.

Navis acquired its stake in Strateq in March 2013. Since then, Navis has worked with the senior management team to: (i) support Strateq’s roll-out of its proprietary hospital information systems solutions, 37 Degrees, into the US healthcare market; (ii) invest in and accelerate new service offerings in cloud solutions and data analytics; and (iii) enhance the company’s corporate systems and processes.

About Navis Capital Partners Limited

Founded in 1998, Navis manages approximately USD 5 billion and focuses on investments primarily in and around Asia. Navis contributes both capital and management expertise to a limited number of well-positioned companies with the objective of directing strategic, operational and financial improvements. Navis has one of the largest private equity professional teams in Asia, comprising over 60 individuals, supported by over 30 administrative staff, in six offices across the region. Navis has a long and proven track record in pan-Asian private equity, with 80 control transactions across the Asian region completed since its establishment.

About Strateq Group

Strateq Group is a leading IT services business in Malaysia. Strateq designs and delivers datadriven digital solutions to serve predominantly enterprise and government customers in key verticals such as oil & gas, financial services and healthcare. Strateq focuses primarily on healthcare information systems, managed services for retail fuel payment solutions and IT infrastructure, cloud services, data analytics, data centre services and IT infrastructure projects. Strateq Group is headquartered in Malaysia, with a presence in Malaysia, Singapore, Thailand, Hong Kong, China and the United States.

Contact details: Navis Capital Partners

Rodney C. Muse
Managing Partner
Navis Capital Partners
(O) +6 03 2302 3888 (M) +6012 322 5495

https://www.empea.org/empea-member-profile-navis-capital-partners

PHNOM PENH, THURSDAY, JULY 30, 2020 : Navis Capital Partners (“Navis”), an Asia-based private equity firm, has completed an investment in CIA FIRST International School Company (“CIA FIRST” or “the Company”). CIA FIRST, is a leading PK-12 international schools group based in Phnom Penh, Cambodia. The investment represents the further build-out of Navis’ affordable education platform that is focused on Southeast Asia’s more developing economies where there are insufficient private school places for the local population. Navis’ first investment in this space was made in 2019 in Vietnam.

Cambodia is a fast growing, developing economy with a very young population. Supported by growing disposable income, household spending on education is expected to grow at 20% CAGR over the coming 5 years resulting in strong demand for high quality, affordable international education. The combination of Cambodia’s high population growth, rapidly emerging middle class and fast-growing economy is increasing demand for better quality education. Top public schools offer only a limited number of seats and many families are seeking opportunities for better educational outcomes. Premium international schools are often too expensive and limit the number of local students in favour of expatriate children. Private schools offering international programmes at reasonable tuition fees are an increasingly suitable choice for Cambodian students. CIA FIRST is a leader in this market, as the quality of education is on par with the ‘premium’ schools, whilst keeping tuition fees affordable for working Cambodian families.

CIA FIRST offers a modern curriculum based on American academic standards ASC WASC (Western Association of Schools and Colleges) accreditation. In addition, CIA FIRST offers College Board Advanced Placement (AP) courses in high school, including the prestigious AP Capstone Diploma. The school currently operates 2 campuses in Phnom Penh with a total enrolment of 3,200 students. Navis is providing CIA FIRST with growth capital for two new flagship campuses, which will be completed for the upcoming academic year. Further expansion is expected in the coming years.

CIA FIRST is an established local brand and the largest international private school in the country in terms of student enrolment. Operating in the mid-priced international school segment, CIA FIRST provides quality international education at its spacious campuses that are fully equipped with modern academic infrastructure and extra-curricular facilities. Aside from its main US-based curriculum offering, CIA FIRST also offers an optional local Khmer curriculum, providing its students the flexibility to pursue higher (tertiary) education either in Cambodia or abroad.

David Ireland, Senior Partner at Navis Capital, commented: “CIA FIRST is a leader in Cambodia in the affordable, high quality education sector. Its modern, state of the art campuses, outstanding facilities and experienced multi-national faculty are providing an excellent international educational experience for its growing student body. Cambodia’s strong economic growth and demand for accessible international education make CIA’s offerings particularly attractive and we expect to see further opportunities for CIA FIRST to expand in Phnom Penh and elsewhere in Cambodia. We are very excited to join together with CIA FIRST’s founders in the coming years to further develop the Company’s offerings and create new opportunities for its students and academic team.

Oknha Dr. Trang Ly and Him Samath Sprung, CIA FIRST co-founders, commented: “We are absolutely delighted to welcome Navis into the Company and are very excited about the opportunities the partnership will bring. Since its foundation in 2004, CIA FIRST has gone from strength to strength, based on the original founding principals of providing world-class education at affordable tuition fees to the Cambodian population. This has proved to be an extremely successful model, as can be seen by the outstanding growth experienced over the past 16 years. This investment has come at exactly the right time, which will enable the organization to realize even further ambitions, reach further goals, and effect greater positive social change, both domestically and internationally.”

Founded in 1998, Navis manages approximately USD 5 billion and focuses on investments primarily in and around Asia. Navis contributes both capital and management expertise to a limited number of well-positioned companies with the objective of directing strategic, operational and financial improvements. Navis has one of the largest private equity professional teams in Asia, comprising 60 individuals, supported by over 30 administrative staff, in six offices across the region. Navis has a long and proven track record in pan-Asian private equity, with more than 80 control transactions across the Asian region completed since its establishment.

About CIA FIRST International School

Founded in 2004, CIA FIRST is the largest and leading K-12 international private schools group in Cambodia. CIA FIRST currently operates 2 campuses in Phnom Penh with a total enrolment of 3,200 students and c. 500 teachers with WASC (Western Association of Schools and Colleges) accreditation. Operating in the mid-priced bi-lingual/ international school segment, CIA First provides quality international education in its spacious campuses, fully equipped with modern academic infrastructure and extra-curricular facilities at an affordable price. CIA FIRST targets and serves the growing local demand with local Cambodians contributing to 90% of its student body and an excellent track record of over 90% student retention rate. Aside from its main the full-time international (FTI) American curriculum offering, CIA FIRST also offers FTI with a Khmer Language and Culture option or with a Khmer Curriculum Elective option, providing its students flexibility to pursue higher (tertiary) education either in Cambodia or abroad.

Contact details: Navis Capital Partners

Kuala Lumpur, 12 March 2020 – Navis Capital Partners (“Navis”) announced that it has signed an agreement to divest its stake in Strateq Sdn Bhd (“Strateq”), a leading Malaysia-based data driven business solutions and information and communications technology (ICT) company with a growing international presence, to Taman Kenyir Holdings Sdn. Bhd., an indirect subsidiary of StarHub Ltd (“StarHub”), a leading telecommunications company listed on the Singapore Exchange.

The transaction value comprises an initial consideration of RM250 million for 88% of the ordinary shares and 7 million redeemable preference shares of Strateq. The consideration will be subsequently adjusted for the cash, debt and working capital position of Strateq at completion, and a further deferred consideration may be payable by StarHub, subject to Strateq meeting certain financial targets in 2021.

Established in 1988, Strateq designs and delivers data-driven digital solutions to serve enterprise and public sector customers across Malaysia, Singapore, China, Hong Kong, Thailand and the United States. Strateq focuses primarily on healthcare information systems, managed services for retail fuel payment solutions, cloud services, data analytics, data centre services and IT infrastructure projects.

Navis acquired its stake in Strateq in March 2013. Since then, Navis has worked with the senior management team to: (i) support Strateq’s roll-out of its proprietary hospital information systems solutions, 37 Degrees, into the US healthcare market; (ii) invest in and accelerate new service offerings in cloud solutions and data analytics; and (iii) enhance the company’s corporate systems and processes.

Rodney Muse, Co-Managing Partner of Navis, said, “The Strateq Group is a leading IT services company in Malaysia that has successfully grown its business to provide IT solutions to blue chip customers in key verticals such and oil & gas, healthcare, financial services and expanded its reach beyond Malaysia to Singapore, Thailand, Hong Kong, China and the United States. We are delighted that the company will have a partner in StarHub who will enable Strateq to embark on its next phase of growth. We would like to take this opportunity to thank the management team led by Tunku Dato’ Seri Shahabuddin, Tan Seng Kit, Datuk Ahmad Fikri and Yeap Chong Boon for their many years of hard work. We wish them all the best in the future.” Mr Tan Seng Kit, Group Managing Director, said, “We have had a successful partnership with Navis and appreciate their support in Strateq’s entry into new markets and securing growth opportunities. On behalf of the management team, we look forward to working together with Starhub to further strengthen our capabilities and market access to drive future growth.”

The acquisition is expected to complete by 1H2020, subject to the fulfilment of mutually agreed conditions. Upon completion of the acquisition, it is envisaged that Strateq Sdn Bhd will be held via Taman Kenyir Holdings Sdn. Bhd., Starhub’s indirect Malaysian subsidiary and two other Malaysian-incorporated entities owned by Tunku Dato’ Seri Shahabuddin, Group Chairman of Strateq, and Datuk Ir. Dr. Ahmad Fikri Bin Hussein, Executive Director of Strateq. Mr. Tan Seng Kit will continue as the Group Managing Director together with the entire senior management team.

About Navis Capital Partners Limited

Founded in 1998, Navis manages approximately USD 5 billion and focuses on investments primarily in and around Asia. Navis contributes both capital and management expertise to a limited number of well-positioned companies with the objective of directing strategic, operational and financial improvements. Navis has one of the largest private equity professional teams in Asia, comprising over 70 individuals, supported by over 35 administrative staff, in six offices across the region. Navis has a long and proven track record in pan-Asian private equity, with 80 control transactions across the Asian region completed since its establishment.

About Strateq Group

Strateq Group is a leading IT services business in Malaysia. Strateq designs and delivers datadriven digital solutions to serve predominantly enterprise and government customers in key verticals such as oil & gas, financial services and healthcare. Strateq focuses primarily on healthcare information systems, managed services for retail fuel payment solutions and IT infrastructure, cloud services, data analytics, data centre services and IT infrastructure projects. Strateq Group is headquartered in Malaysia, with a presence in Malaysia, Singapore, Thailand, Hong Kong, China and the United States.

Contact details: Navis Capital Partners

Rodney C. Muse
Managing Partner
Navis Capital Partners
(O) +603-2302-3888 (M) +60123225495