Promethean Set to Operate as a Standalone Company with New Merger Agreement

Rhea-AI Summary

Promethean, an education technology company, is set to merge with Gravitas Education Holdings, Inc. (NYSE: GEHI) following a spin-off approved by its parent company, NetDragon Websoft Holdings. The merger, expected in Q3 2023, will allow Promethean to operate as an independent firm, listed on the NYSE as MYND.AI, with a dedicated management team aiming to enhance shareholder value. This strategic move is intended to bolster Promethean's position in the global education market and accelerate the development of innovative AI technologies. The leadership expressed confidence in the merger's potential to transform educational practices and foster sustainable growth.

Positive

• Promethean will operate independently as MYND.AI, enhancing strategic focus.
• Expected to drive growth in the global education sector with innovative AI technologies.
• Leadership change aimed at increasing shareholder value post-merger.
• Promethean's expanded product offerings include AI solutions, aligning with market trends.

Negative

• Potential integration challenges between Promethean and Gravitas Education Holdings.
• Market uncertainties surrounding the effectiveness of AI implementation in education.

Company plans to merge with Gravitas Education Holdings, Inc. to deliver greater strategic and operational focus

SEATTLE, April 19, 2023 /PRNewswire/ -- Promethean, a leading global education technology company, announced today that its parent company, NetDragon Websoft Holdings Limited, has approved a plan and entered into the related agreements to spin off the Promethean group of entities into a separate company that will subsequently merge with Gravitas Education Holdings, Inc., a public company.

Following the merger, expected to be completed in Q3, Promethean will benefit from operating as a standalone company separate from NetDragon, listed on the NYSE, with a distinct board and management team of world-class leaders focused on driving shareholder value. The new holding company will be renamed to MYND.AI at the transaction's closing to reflect the new brand and the company's direction to pursue the transformation of artificial intelligence (AI) in education.

Merging with Gravitas Education Holdings, Inc. (NYSE: GEHI) will enable the company to grow its global education business sustainably and further the development of new innovative technologies like AI. Promethean has expanded its product offerings to include software and AI in the past year. This merger is the next stage in the evolution of the company's goal to strengthen its global position in the market and remain the market leader in the U.S. and EMEA.

"The decision to spin off our overseas education business advances our ability to create value for customers and shareholders. Our business is at an exciting market inflection point as the world moves toward accelerating the application of AI in virtually all industries. 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," said Dr. Simon Leung, vice chairman of NetDragon and chairman of MYND.AI, upon closing of the transaction. "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 of becoming the dominant category leader in the AI-enabled classroom technology space. We are excited about our path ahead, and I want to thank our shareholders for their support as we embark on this journey together."

"As the classroom evolves, we continue to look to the future to provide innovative educational technology solutions that transform teaching and learning. We are excited to be at the forefront of integrating AI into our products that will add true education value, leveraging our investment in AI technology and our deep understanding of customer needs over the past 25 years," said Vin Riera, CEO at Promethean and MYND.AI, upon closing of the transaction. "This exciting new chapter will build on our mission to design learning and collaboration tools that deliver the most effective learning outcomes for teachers and students."

Learn more about Promethean here.

About Promethean
Promethean is a leading education technology company working to transform the way the world learns and collaborates. From our founding in Blackburn, England, more than 25 years ago to our global operations in 22 countries today, we've continued to explore, innovate, and inspire —designing learning and collaboration tools that are built for breakthroughs. Our award-winning interactive display, ActivPanel, and lesson delivery software, ActivInspire and ClassFlow, were designed to engage students, connect colleagues, and bring out the brilliance in everyone. With headquarters in Seattle, Washington, and offices worldwide, Promethean is a member of the NetDragon Websoft Holdings Limited (HKSE: 0777) group of companies. Visit us at PrometheanWorld.com.

About NetDragon
NetDragon Websoft Holdings Limited (HKSE: 0777) is a global leader in building internet communities with a long track record of developing and scaling multiple internet and mobile platforms that impact hundreds of millions of users, including previous establishments of China's first online gaming portal, 17173.com, and China's most influential smartphone app store platform, 91 Wireless.   

Established in 1999, NetDragon is one of the most reputable and well-known online game developers in China with a history of successful game titles including Eudemons Online, Heroes Evolved, Conquer Online and Under Oath. In recent years, NetDragon has also started to scale its online education business on the back of management's vision to create the largest global online learning community, and to bring best-in-class integrated blended learning solutions to every school around the world. Visit us at http://www.netdragon.com/.

©2023 Promethean. All Rights Reserved. Promethean, the Promethean logo, ActivPanel, ActivSync, ActivInspire, ActivConnect, ActivSound, ClassFlow, Vellum, and ActivPen are trademarks or registered trademarks of Promethean Limited in the United Kingdom, United States, and other countries around the world. All other product and company names are trademarks or registered trademarks of their respective holders. Unless specifically identified as such, Promethean's use of third-party trademarks does not indicate any relationship, sponsorship, or endorsement between Promethean and the owners of these trademarks.

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SOURCE Promethean

FAQ

What is the purpose of Promethean's merger with Gravitas Education Holdings?

The merger aims to enhance Promethean's strategic focus and drive growth in the global education market.

When is the merger between Promethean and Gravitas Education Holdings expected to be completed?

The merger is expected to be completed in Q3 2023.

How will Promethean operate after the merger?

After the merger, Promethean will operate as a standalone company listed on the NYSE as MYND.AI.

What impact will the merger have on Promethean's product offerings?

The merger is expected to accelerate the development of innovative AI technologies in Promethean's products.

What changes will occur in Promethean's leadership due to the merger?

The merger will lead to a distinct board and management team focused on driving shareholder value.