Navitas Group
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Navitas (also known as Navitas Limited, previously known as IBT Education) is an Australian owned for-profit private education services company, owning various private education providers internationally. It is the largest private non-university
higher education Higher education is tertiary education Tertiary education, also referred to as third-level, third-stage or post-secondary education, is the education Education is the process of facilitating learning, or the acquisition of knowledge ...
provider in
Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...

Australia
. Navitas made A$929.69 million in total sales in 2018, through its various
subsidiaries A subsidiary, subsidiary company or daughter company is a company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture o ...
and pathways programs in association with 11 public universities in Australia.


History

Navitas was established in 1994, as ''the Perth Institute of Business and Technology (PIBT).'' The company was co-founded by Rod Jones and Dr Peter Larsen, as a joint venture with
Edith Cowan University Edith Cowan University (ECU) is an Australian public university #REDIRECT Public university #REDIRECT Public university #REDIRECT Public university#REDIRECT Public university A public university or public college is a university or college th ...
. Both founders had career backgrounds in
education Education is the process of facilitating learning, or the acquisition of knowledge, skills, value (ethics), values, morals, beliefs, habits, and personal development. Educational methods include teaching, training, storytelling, discussion ...

education
and education administration, and recognised a gap in the tertiary education sector, where
international student International students, or foreign students, are students who chose to undertake all or part of their tertiary education in a country other than their own and move to that country for the purpose of studying. In 2019, there were over 6 million ...
s, despite being equally capable as domestic students, were failing their courses due to lack of support. Following a partnership deal with a university in the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain,Usage is mixed. The Guardian' and Telegraph' use Britain as a synonym for the United Kingdom. Some prefer to use Britain as shorth ...

United Kingdom
in 2000, the company made its first international expansion. Four years onward, following success in this venture and the further establishment of pathways colleges, the company was listed publicly on the Australian Securities Exchange as IBT Education, being the first Australian education company to do so. In 2005, as Australia's only private education company of its kind at the time, IBT Education acquired the largest private English training company in Australia, Australian Centre for Languages (ACL) Pty Ltd. for A$55.7m. Following shareholder approval, the company proceeded with a renaming in 2007, renaming itself from IBT Education Limited, to Navitas Limited, as well as rebranding its public operations to Navitas. Navitas expanded operations into the
USA The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America North America is a continent entirely within the Northern Hemisphere and a ...

USA
in 2010, through partnerships with the
University of Massachusetts The University of Massachusetts is the five-campus public In public relations Public relations (PR) is the practice of managing and disseminating information from an individual or an organization An organization, or organisati ...
and
Western Kentucky University Western Kentucky University is a public university in Bowling Green, Kentucky. It was founded by the Commonwealth of Kentucky in 1906, though its roots reach back a quarter-century earlier. It operates regional campuses in Glasgow, Kentucky, Gla ...
. Responding to a favourable financial environment, Navitas moved on acquiring SAE Group, for A$294.3m, in 2011, its largest acquisition so far. Following further success, propelled by the growing international education industry, in 2014, Navitas entered the
ASX ASX is the Australian Securities Exchange. ASX may also refer to: * Advanced Stream Redirector The Advanced Stream Redirector (ASX) format is a type of XML metafile designed to store a playlist A playlist is a list of video or audio file ...
100. Subsequently,
Forbes ''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family The Forbes family is one of the Boston Brahmins—a wealthy extended American family long prominent in Boston, Massachusett ...

Forbes
placed it 25th in their Most Innovative Growth Companies 2014 list. In 2017, the company launched Navitas Ventures, a corporate venture capital fund.


Private equity takeover

In 2019, Navitas agreed to a
buyout In finance, a buyout is an investment Investment is the dedication of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance Finan ...
from a
consortium A consortium (plural: consortia) is an association Association may refer to: *Club (organization), an association of two or more people united by a common interest or goal *Trade association, an organization founded and funded by businesses tha ...

consortium
of investors, following negotiation throughout 2018 and 2019, where Navitas rejected the initial offer. Following this, the
shareholder A shareholder (in the United States often referred to as stockholder) of a corporation A corporation is an organization—usually a group of people or a company—authorized by the State (polity), state to act as a single entity (a legal ...
s were informed of the terms of the buyout, at A$5.825 per share (A$2.3 billion total). The investor
consortium A consortium (plural: consortia) is an association Association may refer to: *Club (organization), an association of two or more people united by a common interest or goal *Trade association, an organization founded and funded by businesses tha ...

consortium
was led by private equity firm BGH Capital, also consisting of
AustralianSuper AustralianSuper is the largest Australian Superannuation in Australia, superannuation and pension fund, with approximately one in every ten Australian workers as members. AustralianSuper is an industry superannuation fund run only to profit mem ...
and the company's founder Rod Jones. This marked the largest-ever acquisition by an Australian private equity firm, by gross value.


Structure

As of 2019, the ultimate parent of Navitas Limited is BGH Capital.


Segments

The company's
subsidiary A subsidiary, subsidiary company or daughter company is a company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture o ...
businesses are categorised under two segments; careers and industry, and university pathways partnerships. These categorisations are used to describe its
revenue In accounting Accounting or Accountancy is the measurement ' Measurement is the number, numerical quantification (science), quantification of the variable and attribute (research), attributes of an object or event, which can be used to comp ...
sources.


Careers and industry

These companies explicitly provide career and industry training to students: * Navitas English * Navitas Professional * SAE Creative Media Institute * Australian College of Applied Psychology (ACAP) * Australian School of Applied Management (ASAM)


University pathways partnerships

These partnerships are between universities and Navitas, establishing separate pathways colleges, with the university branding for students who would otherwise not meet entry requirements to the university.


Navitas Ventures

In 2017, Navitas launched its
venture capital Venture capital (VC) is a form of private equity Private equity (PE) typically refers to investment funds, generally organized as limited partnerships, that buy and restructure companies that are not publicly traded. Private equity is a ty ...
fund, Navitas Ventures, aimed at
startups A startup or start-up is a company or project undertaken by an entrepreneur Entrepreneurship is the creation or extraction of value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally ...
in the
educational technology Educational technology (commonly abbreviated as EduTech, or EdTech) is the combined use of computer hardware, software, and educational theoryEducation sciences or education theory (traditionally often called pedagogy Pedagogy (), most commonl ...
(EdTech) sector.


Portfolio

As of 2021, the Navitas Ventures
portfolio Portfolio may refer to: Objects * Portfolio (briefcase), a type of briefcase Collections * Portfolio (finance), a collection of assets held by an institution or a private individual * Artist's portfolio, a sample of an artist's work or a c ...
contains nine companies:
Paragon One

InsideSherpa

StudyLink

Australian School of Applied Management

National Excellence in School Leadership Initiative

Women & Leadership Australia

PAT Inc

Become

Acadeum


Revenue

The company derives
revenue In accounting Accounting or Accountancy is the measurement ' Measurement is the number, numerical quantification (science), quantification of the variable and attribute (research), attributes of an object or event, which can be used to comp ...
from areas which are categorised into three segments, defined by the .


University partnerships

This segment encapsulates pathways programs run by Navitas in partnership with other universities. University partnerships account for the largest part of Navitas revenue, and was their original revenue source.


Careers and industry

This segment includes all career and industry training institutions, such as
SAE Institute The SAE Institute (SAE, formerly the School of Audio Engineering and the SAE Technology College) is a private Private or privates may refer to: Music * "In Private", by Dusty Springfield from the 1990 album ''Reputation'' * Private (band), a ...
and Professional & English Programs (PEP). The careers and industry section of the business is a result of Navitas' acquisition of training institutions, such as Australian College of Applied Psychology, SAE Institute, and Australian School of Applied Management. The segment also includes student recruitment services, which provides recruitment services to students such as
internships An internship is a period of work experience offered by an organization for a limited period of time. Once confined to medical graduates, internship is used practice for a wide range of placements in businesses, non-profit organization A no ...
, for those seeking experience internationally. Prior to 2017, this segment was represented as 2 smaller categories, Professional and English Programs (PEP) and SAE Institute, however was merged.


Corporate

This segment includes Navitas group's corporate functions.


Yearly results (2006–2018)

This table displays the total revenue divided by each segment, before interest, taxes, depreciation, amortisation and impairment. All dollar figures in this table are in Australian Dollars (AUD), in thousands.


Leadership


Rod Jones, CEO from 1994–2018

Rod Jones co-founded the company, Initially working in government and university administration. With experience in the industry, and an interest in capitalising on the rapidly growing student market, the founder found initial success upon the company's inception. Rod Jones remained CEO of the company through its expansion, until it was re-privatised by the consortium run by BGH Capital. He was then succeeded by David Buckingham.


David Buckingham, CEO from 2018–2019

On 27th Feb 2018, the board announced that David Buckingham will succeed Rod Jones as CEO after 23 years of service. David Buckingham worked for Navitas since 2016, and was previously CEO of
iiNet iiNet Limited is an Australian internet service provider An Internet service provider (ISP) is an organization that provides a myriad of services for accessing, using, or participating in the Internet The Internet (or internet ...
, an Australian telecommunications provider.


Scott Jones, CEO from 2019–present

Following the BGH Capital takeover, Scott Jones was appointed CEO in 2019. Scott Jones had worked within Navitas group since 2008, working as CEO for SAE Global, then CEO for Navitas Careers and Industry Division.


Criticism


Industry criticisms

For-profit private education has come under scrutiny in many industry journal reports, with Navitas, as Australia's biggest provider in the industry, commonly the subject of discussion. It is suggested by scholars that for-profit private education has several pitfalls. The for-profit model is said to compromise the quality of education, in favour of financial profit. However, the sector provides a pivotal part in many disadvantaged students lives, to provide a second chance, to those who did not have access to traditional tertiary education pathways. The rapid growth of the private higher education (PHE) industry has been linked in many countries to employers’ changing workforce demands, to preferring workers who can quickly react to technological advancements. In Australia, the cause of this growth has been linked to the inability of the public education sector to accommodate the growing demand of international students. The foundation of TEQSA in 2011 and subsequent funding towards public tertiary education providers, has further contributed to Navitas and the PHE industry's ability to grow in Australia.


La Trobe Melbourne

Between April and June 2014, staff at Navitas owned La Trobe Melbourne partook in various strikes. This industrial action was in response to unreasonable negotiation of employment in regards to working conditions, job cuts and job security, between Navitas and the National Tertiary Education Union (NTEU). The working conditions being contested were the employer's usage of hot-desking and lack of staff space such as lockers. The job security concerns were in regards to more than 60 percent of the university's teaching staff being employed by casual contracts. In response to the strike, the university chancellor refused an open dialogue with the Union, and proceeded with the 350 job cuts. Following the job cuts, the National Tertiary Education Union submitted an enquiry with the Fair Work Commission, requesting that the Commission assess their dispute with the La Trobe Melbourne (Navitas) enterprise bargaining agreement (EBA). The dispute details the NTEU's belief that Navitas had failed assess its need for casual staff, in the case that many staff employed casually should actually be under fixed-term or on-going contracts, as stated in the EBA. This type of employment is known as sham contracting. The Fair Work Commission expressed that it was not satisfied with Navitas' obligation to assess their casual employment contract validity. The Commission stated that all casual contracts must be re-assessed, and that Navitas must expedite this process, and work with NTEU to fulfil their obligation within the EBA.


See also

*
SAE Institute The SAE Institute (SAE, formerly the School of Audio Engineering and the SAE Technology College) is a private Private or privates may refer to: Music * "In Private", by Dusty Springfield from the 1990 album ''Reputation'' * Private (band), a ...


References


Further reading

* Hougaz, L. (2019). "Rod Jones: Navitas", in ''Entrepreneurs Creating Educational Innovation: Case Studies From Australia'' (1st ed. 2020 ed., pp. 55–68). Melbourne, Australia: Springer. * Durkin, P. (6 September 2017)
How Rod Jones grew Navitas into an education juggernaut
Retrieved 31 May 2021.


External links


Navitas WebsiteNavitas Branch of the National Tertiary Education Union
{{DEFAULTSORT:Navitas Australian tertiary institutions Companies based in Perth, Western Australia Education companies of Australia Australian vocational education and training providers Technical and further education Vocational education in Australia Australian companies established in 1994 Companies of Australia Education companies established in 1994