Wikipedia

Navitas Limited

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.[3] It is the largest private non-university higher education provider in Australia.[4]

Navitas Pty Ltd
Navitas
FormerlyIBT Education Pty Ltd
Company typePrivate
ISINAU000000NVT2
IndustryEducation services
Founded1994 in Perth, Australia
Founders
HeadquartersLevel 8 Brookfield Place, 125 St Georges Terrace,
Perth, WA
,
Australia
Number of locations
over 120 (2017)
Areas served
Key people
Services
Revenue
  • Decrease AU$943,356,000 (2020)
  • AU$958,671,000 (2019)
  • Decrease AU$-53,234,000 (2020)
  • AU$81,226,000 (2019)
Total assets
  • Increase AU$1,022,931,000 (2020)
  • AU$874,625,000 (2019)
Number of employees
6,046 (2020)
ParentBGH Capital
Subsidiaries
  • SAE Institute
  • Navitas English
  • Australian College of Applied Psychology (ACAP)
  • Navitas Professional
  • Australian School of Applied Management (ASAM)
Websitewww.navitas.com Edit this on Wikidata
Footnotes / references
[1][2]

Navitas made A$929.69 million in total sales in 2018, through its various subsidiaries and pathways programs in association with 11 public universities in Australia.[5]

History

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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. Both founders had career backgrounds in education and education administration, and recognised a gap in the tertiary education sector, where international students, despite being equally capable as domestic students, were failing their courses due to lack of support.[6][7] Following a partnership deal with a university in the United Kingdom in 2000, the company made its first international expansion.[7] 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.[7]

In 2005, as Australia's only private education company of its kind at the time, IBT Education acquired the largest private English language teaching (ELT) company in Australia, Australian Centre for Languages (ACL) Pty Ltd. for A$55.7m.[8] 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.[8] Navitas expanded operations into the USA in 2010, through partnerships with the University of Massachusetts and Western Kentucky University.[9] Responding to a favourable financial environment, Navitas moved on acquiring SAE Group, for A$294.3m, in 2011, its largest acquisition so far.[10] Following further success, propelled by the growing international education industry, in 2014, Navitas entered the ASX 100.[11] Subsequently, Forbes placed it 25th in their Most Innovative Growth Companies 2014 list.[12] In 2017, the company launched Navitas Ventures, a corporate venture capital fund.[13]

 
Navitas' first partner, Edith Cowan University

Private equity takeover

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In 2019, Navitas agreed to a buyout from a consortium of investors, following negotiation throughout 2018 and 2019, where Navitas rejected the initial offer.[14] Following this, the shareholders were informed of the terms of the buyout, at A$5.825 per share (A$2.3 billion total). The investor consortium was led by private equity firm BGH Capital, also consisting of AustralianSuper and the company's founder Rod Jones.[14] This marked the largest-ever acquisition by an Australian private equity firm, by gross value.[15]

Structure

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As of 2019, the ultimate parent of Navitas Limited is BGH Capital.[16]

Segments

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The company's subsidiary businesses are categorised under two segments; careers and industry, and university pathways partnerships.[5] These categorisations are used to describe its revenue sources.[5]

Navitas Organisational Structure
BGH Capital
Navitas
University PartnershipsNavitas VenturesCareers and IndustryCorporate Functions

Careers and industry

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These companies explicitly provide career and industry training to students:[3]

  • Navitas English
  • Navitas Professional
  • SAE Creative Media Institute
  • Australian College of Applied Psychology (ACAP)
  • Australian School of Applied Management (ASAM)

University pathways partnerships

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International College Robert Gordon University building in Aberdeen, United Kingdom.

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.[17]

Navitas Subsidiary Pathway for City Country
Curtin College[18] Curtin University Perth   Australia
Curtin Singapore[19] Curtin University Singapore   Singapore
Deakin College[20] Deakin University Melbourne   Australia
Edith Cowan College[21] Edith Cowan University Perth   Australia
Eynesbury College[22] University of Adelaide, University of South Australia Adelaide   Australia
Griffith College[23] Griffith University Brisbane   Australia
La Trobe College[24] La Trobe University Melbourne   Australia
South Australian Institute of Business and Technology[25] University of South Australia Adelaide   Australia
Sydney Institute of Business and Technology[26] Western Sydney University Sydney   Australia
University of Canterbury International College[27] University of Canterbury Christchurch   New Zealand
University of Canberra College[28] University of Canberra Canberra   Australia
Western Sydney University International College[29] Western Sydney University Sydney   Australia
ARU College[30] Anglia Ruskin University Cambridge   United Kingdom
Birmingham City University International College[31] Birmingham City University Birmingham   United Kingdom
Hertfordshire International College[32] University of Hertfordshire Hertfordshire   United Kingdom
International College at Robert Gordon University[33] Robert Gordon University Aberdeen   United Kingdom
International College Portsmouth[34] University of Portsmouth Portsmouth   United Kingdom
Leicester University Global Study Centre[35] University of Leicester Leicester   United Kingdom
London Brunel International College[36] Brunel University London London   United Kingdom
The College, Swansea University[37] Swansea University Swansea   United Kingdom
The Hague Pathway College[38] The Hague University of Applied Sciences The Hague   Netherlands
Twente Pathway College[39] University of Twente Enschede   Netherlands
University of Northampton International College[40] University of Northampton Northampton   United Kingdom
UA92 Global[41] Lancaster University Manchester   United Kingdom
University of Plymouth International College University of Plymouth Plymouth   United Kingdom
Fraser International College[42] Simon Fraser University Burnaby   Canada
International College of Manitoba[43] University of Manitoba Manitoba   Canada
Richard Bland College of William and Mary Global Student Success Program[44] William & Mary, University of Virginia, Virginia Tech Virginia   United States
Toronto Metropolitan University International College[45] Toronto Metropolitan University Toronto   Canada
Umass Boston Navitas Global Student Success Program[46] UMass Boston Boston   United States
Queens College Global Student Success Program[47] Queens College New York City   United States
Wilfirid Laurier International College[48] Wilfrid Laurier University Brantford   Canada
Australian College of Technology and Business[49] Edith Cowan University Colombo   Sri Lanka
Murdoch University Dubai[50] Murdoch University Dubai   United Arab Emirates
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In 2017, Navitas launched its venture capital fund, Navitas Ventures, aimed at startups in the educational technology (EdTech) sector.[13]

Portfolio

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As of 2021, the Navitas Ventures portfolio contains nine companies:[51]

Revenue

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Navitas Pty Ltd Revenue in 2018.

  University Partnerships (64.4%)
  Careers and Industry (34.2%)
  Corporate Functions (1.4%)

The company derives revenue from areas which are categorised into three segments, defined by the company structure.[5]

University partnerships

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This segment encapsulates pathways programs run by Navitas in partnership with other universities.[13][11][52][53]

University partnerships account for the largest part of Navitas revenue, and was their original revenue source.[7]

Careers and industry

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This segment includes all career and industry training institutions, such as SAE Institute 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, for those seeking experience internationally.[9]

Prior to 2017, this segment was represented as 2 smaller categories, Professional and English Programs (PEP) and SAE Institute, however was merged.[13]

Corporate

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This segment includes Navitas group's corporate functions.[5]

Yearly results (2006–2018)

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This table displays the total revenue divided by each segment,[13][11][52][53] before interest, taxes, depreciation, amortisation and impairment.[8]

All dollar figures in this table are in Australian Dollars (AUD), in thousands.

Year University Partnerships Careers and Industry Corporate Functions Total
2018[5]   $598,887   $317,563   $13,243   $929,693
2017[13]   $574,129   $375,054   $4,321   $953,504
2016[53]   $635,411   $368,440   $4,584   $1,008,435
2015[52]   $566,340   $409,459   $2,432   $978,141
2014[11]   $499,186   $374,532   $2,255   $875,973
2013[54]   $415,713   $311,311   $2,537   $729,561
2012[55]   $366,674   $317,975   $3,497   $688,146
2011[10]   $372,947   $265,152   $3,727   $641,826
2010[9]   $346,755   $205,070   $3,569   $555,394
2009[9]   $283,419   $183,773   $2,644   $469,836
2008[56]   $209,138   $132,843   $1,171   $343,152
2007[8]   $155,929   $125,129   $1,652   $282,710
2006[8] $137,178 $85,475 $3,393 $226,046

Leadership

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Rod Jones, CEO from 1994–2018

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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.[7]

David Buckingham, CEO from 2018–2019

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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, an Australian telecommunications provider.[57]

Scott Jones, CEO from 2019–present

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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.[3]

Criticism

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Industry criticisms

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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.[citation needed]

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.[58]

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.[59]

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.[59]

 
La Trobe Melbourne Campus

La Trobe Melbourne

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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).[60]

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.[61] In response to the strike, the university chancellor refused an open dialogue with the Union, and proceeded with the 350 job cuts.[62]

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.[63] This type of employment is known as sham contracting.[64] The Fair Work Commission expressed that it was not satisfied with Navitas' obligation to assess their casual employment contract validity.[63] 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.[65]


See also

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References

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  1. ^ "Navitas – What we do". www.navitas.com. Retrieved 17 May 2021.
  2. ^ IBISWorld (June 2020). "Navitas Pty Limited". Retrieved 2 June 2021.
  3. ^ a b c "Navitas – Who we are". www.navitas.com. Retrieved 17 May 2021.
  4. ^ Webb, Sue; Bathmaker, Ann-Marie; Gale, Trevor; Hodge, Steven; Parker, Stephen; Rawolle, Shaun (2 January 2017). "Higher vocational education and social mobility: educational participation in Australia and England". Journal of Vocational Education & Training. 69 (1): 147–167. doi:10.1080/13636820.2016.1269359. ISSN 1363-6820.
  5. ^ a b c d e f Navitas Limited (June 2018). "Navitas Limited Annual Report 2018" (PDF). Retrieved 2 June 2021.
  6. ^ Rod Jones, CEO of Navitas, 17 February 2015, archived from the original on 15 December 2021, retrieved 18 May 2021
  7. ^ a b c d e Hougaz, Laura (2020). "Rod Jones: Navitas". Entrepreneurs Creating Educational Innovation: Case Studies From Australia. Springer. pp. 55–68. ISBN 978-3-030-28653-8.
  8. ^ a b c d e IBT Education (2007). "IBT Education Limited Annual Report 2007" (PDF).
  9. ^ a b c d Navitas Limited (2010). "Navitas Limited Annual Report 2010" (PDF). Retrieved 20 June 2021.
  10. ^ a b Navitas Limited (2011). "Navitas Limited Annual Report 2011" (PDF). Retrieved 20 June 2021.
  11. ^ a b c d Navitas Limited (2014). "Navitas Limited Annual Report 2014" (PDF). Retrieved 20 June 2021.
  12. ^ "Navitas". Forbes. Retrieved 17 May 2021.
  13. ^ a b c d e f Navitas Limited (2017). "Navitas Limited Annual Report 2017" (PDF). Retrieved 20 June 2021.
  14. ^ a b Thompson, S. (20 March 2019). "BGH Capital to sign $2.3b Navitas deal". Australian Financial Review.
  15. ^ "BGH looks overseas after $2.3b deal for Navitas". Australian Financial Review. 21 March 2019. Retrieved 31 May 2021.
  16. ^ "Navitas Pty Limited". www.ibisworld.com. IBISWorld. June 2020. Retrieved 17 May 2021.
  17. ^ "Navitas – What we do". www.navitas.com. Retrieved 28 May 2021.
  18. ^ "Study in Perth | Curtin College at Curtin University". www.curtincollege.edu.au. Retrieved 17 May 2021.
  19. ^ "Study in Singapore | Australia's Curtin University campus in Singapore". www.curtin.edu.sg. Retrieved 17 May 2021.
  20. ^ "Deakin Pathways to University | Foundation, Diploma". Deakin College. Retrieved 17 May 2021.
  21. ^ "Edith Cowan College – Your Direct Pathway to ECU". www.edithcowancollege.edu.au. Retrieved 17 May 2021.
  22. ^ "Eynesbury College – Home". www.eynesbury.navitas.com. Retrieved 17 May 2021.
  23. ^ "Griffith College – Get a Head Start on your Journey to Griffith University". Griffith College. Retrieved 17 May 2021.
  24. ^ "La Trobe College Australia – Home". www.latrobecollegeaustralia.edu.au. Retrieved 17 May 2021.
  25. ^ "SAIBT – Your Direct Pathway to University of South Australia". www.saibt.sa.edu.au. Retrieved 17 May 2021.
  26. ^ "SIBT – Home". www.sibt.nsw.edu.au. Retrieved 17 May 2021.
  27. ^ "UCIC – About UCIC". www.ucic.ac.nz. Retrieved 17 May 2021.
  28. ^ Unknown (20 May 2014). "UC College". www.canberra.edu.au. Retrieved 17 May 2021.
  29. ^ "Western Sydney University International College". internationalcollege.westernsydney.edu.au. Retrieved 17 May 2021.
  30. ^ "ARU College – Undergraduate and Postgraduate Pathways to ARU". ARU College. Retrieved 17 May 2021.
  31. ^ "BCUIC – Home". www.bcuic.navitas.com. Retrieved 17 May 2021.
  32. ^ "HIC – Home". www.hic.navitas.com. Retrieved 17 May 2021.
  33. ^ "ICRGU – Home". www.icrgu.navitas.com. Retrieved 17 May 2021.
  34. ^ "ICP – Home". www.icp.navitas.com. Retrieved 17 May 2021.
  35. ^ "Leicester Global Study Centre – Home". www.leicestergsc.com. Retrieved 17 May 2021.
  36. ^ "LBIC – Home". www.lbic.navitas.com. Retrieved 17 May 2021.
  37. ^ "The College, Swansea University – Swansea University". www.swansea.ac.uk. Retrieved 17 May 2021.
  38. ^ "THPC – Home". www.thehaguepathway.nl. Retrieved 17 May 2021.
  39. ^ "TPC – Home". www.twentepathway.nl. Retrieved 17 May 2021.
  40. ^ "UNIC – Home". www.unic.navitas.com. Retrieved 17 May 2021.
  41. ^ Ltd, Webpagesoftware. "University Academy 92". ua92.ac.uk. Retrieved 17 May 2021.
  42. ^ "FIC – Home". www.fraseric.ca. Retrieved 17 May 2021.
  43. ^ "ICM – Home". www.icmanitoba.ca. Retrieved 17 May 2021.
  44. ^ "RBC GSSP – Home". www.rbcglobal.com. Retrieved 17 May 2021.
  45. ^ "Toronto Metropolitan University International College - Your Path to Toronto Metropolitan University". Toronto Metropolitan University International College. Retrieved 27 December 2022.
  46. ^ "UMass Boston Navitas GSSP | Study in the USA". UMass Boston. Retrieved 17 May 2021.
  47. ^ "Queens College – Home". www.queensgssp.com. Retrieved 17 May 2021.
  48. ^ "Wilfrid Laurier International College | Wilfrid Laurier University". www.wlu.ca. Retrieved 17 May 2021.
  49. ^ "Home". ACTB. Retrieved 17 May 2021.
  50. ^ "Murdoch University Dubai – Home". www.murdochuniversitydubai.com. Retrieved 17 May 2021.
  51. ^ "Home". Navitas Ventures. Retrieved 31 May 2021.
  52. ^ a b c Navitas Limited (2015). "Navitas Limited Annual Report 2015" (PDF).
  53. ^ a b c Navitas Limited (2016). "Navitas Limited Annual Report 2016" (PDF).
  54. ^ Navitas Limited (2013). "Navitas Limited Annual Report 2013" (PDF).
  55. ^ Navitas Limited (2012). "Navitas Limited Annual Report 2012" (PDF).
  56. ^ Navitas Limited (2008). "Navitas Limited Annual Report 2008" (PDF).
  57. ^ Navitas Newsroom (27 February 2018). "David Buckingham to become Group Chief Executive Officer of Navitas". Retrieved 27 April 2021. {{cite web}}: |author= has generic name (help)
  58. ^ Shah, Mahsood; Nair, Chenicheri Sid (1 October 2013). "Private for-profit higher education in Australia: widening access, participation and opportunities for public-private collaboration". Higher Education Research & Development. 32 (5): 820–832. doi:10.1080/07294360.2013.777030. ISSN 0729-4360.
  59. ^ a b Shah, Mahsood; Vu, Hai Yen; Stanford, Sue-Ann (2 January 2019). "Trends in private higher education in Australia". Perspectives: Policy and Practice in Higher Education. 23 (1): 5–11. doi:10.1080/13603108.2018.1521348. ISSN 1360-3108.
  60. ^ National Tertiary Education Union (25 June 2014). "Locking in fairness at Navitas". NTEU Advocate. 21 (2).
  61. ^ Bailey, M. (21 May 2014). "Staff at La Trobe University Bundoora strike after negotiations with Navitas break down". Herald Sun.
  62. ^ Evans, Michael (19 September 2014). "Media Release: La Trobe Vice Chancellor exposes real reasons for sackings". National Tertiary Education Union. Retrieved 24 May 2021.
  63. ^ a b "Supercasuals Campaign Delivers Landmark LTM Win – Uni Casual". www.unicasual.org.au. Retrieved 28 May 2021.
  64. ^ "Welcome to the Fair Work Ombudsman website". Fair Work Ombudsman. Retrieved 28 May 2021.
  65. ^ Bissett, Michelle (3 June 2016). "National Tertiary Education Union v Navitas Bundoora Pty Ltd T/A La Trobe Melbourne". Fair Work Commission.

Further reading

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  • 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.
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