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TutorVista, Educomp to get $30 mn from Pearson

TutorVista, Educomp to get $30 mn from Pearson
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First Published: Thu, Jun 25 2009. 12 52 AM IST
Updated: Thu, Jun 25 2009. 12 52 AM IST
New Delhi: The owner of the ‘Financial Times’ newspaper and book publisher Penguin, Pearson Plc. , will invest $30 million (around Rs145 crore) in two Indian education companies as part of plans to use the country as a base for expansion.
The company will take a 17.2% stake in Bangalore-based TutorVista Global Pvt. Ltd and enter into a venture with Gurgaon-based Educomp Solutions Ltd, Pearson said in a press release issued in New Delhi on Wednesday. “We have a great respect for the expertise, capabilities and innovations that Educomp and TutorVista have brought to the education market,” Pearson chief executive officer Marjorie Scardino said. “We see India not only as a big growth market in itself, but also as a place for us to build a business that will be relevant across the world.”
Pearson is increasing revenue from education products to reduce dependency on advertising sales. Pearson had said on 15 April it was purchasing Wall Street English, which offers English-language training in China, for $145 million in cash to bolster its education business and expand in the continent.
Educomp rose 11.18% to close at Rs3,427.35 in Mumbai.
TutorVista was started in 2005 and teaches students online, preparing them for tests in the US and the UK. Pearson will take a 50% stake in Educomp’s vocational training unit, it said, without giving details about the investment in each company.
The development follows barely a month after Pearson Virtual University Enterprises (VUE), a testing arm of Pearson, launched the Indian version of its tests under a licensing pact with the Law School Admission Council of the US.
Pearson’s buying stakes in the two Indian firms signals increasing global interest in India’s testing market. Last year Pearson VUE bid for a contract from the Indian Institutes of Management to conduct their entrance test online.
(Pallavi Singh of Mint contributed to this story.)
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First Published: Thu, Jun 25 2009. 12 52 AM IST