NetDragon spins off overseas education arm

NetDragon Websoft (0777) has spun off its overseas education business to merge it with NYSE-listed Gravitas Education to form a company called Mynd.ai with a valuation of US$800 million (HK$6.24 billion).

NetDragon will retain a 74.39 percent stake in the new entity, which offers AI-powered interactive education panels and software as a service to schools.

These products are currently operational in around 1 million classrooms, benefiting 100 million students.

Simon Leung Lim-kin, vice chairman of NetDragon and chairman of Mynd.ai, said completion of the transaction would be a crucial milestone for NetDragon.

It is expected to unlock substantial value for shareholders by spinning off the overseas education business into an independent, publicly listed entity in the US.

The move would put the company in a position to redefine the educational landscape, transitioning from a hardware provider to a leader in "classroom as a service," it said.

Leung predicts the rapid development and extensive application of AI will bring about revolutionary changes to the education sector as the technology has the potential to improve educational equality and efficiency by aiding teachers in handling routine duties.