3P Learning (3PL) $1.23

3PL is a Sydney based business specialising in online education with cloud based software, their shares soared in January following the announcement of a possible merger with learning company Blake which will effectively cost 3PL ~$185m. Blake is a privately owned business with a similar product mix to 3PL, the 2 companies have a solid 7-year relationship which makes us confident the deal will go ahead.
The company specialises in the pointy end of education i.e. maths, literacy and science with many people familiar with the company’s products such as Mathletics & Spellodrome – my daughters certainly are. On its own 3PL targets both institutions and families, its already become an international leader with over 5 million students across 17,000 schools globally. While this is a business that benefits from the new COVID landscape their implementation has also been on-point and we like the stock overall, however negative sentiment towards the sector could create a better buying opportunity in this fairly illiquid stock.