Pearson acquires TutorVista-Indian education company
Pearson, a leading learning company and owner of the Financial Times and Penguin Books, on Tuesday announced that it has increased its shareholding in TutorVista, a fast growing Indian education company, to a controlling 76% stake for a consideration of INR 577 crore.
TutorVista was founded in 2005 by Krishnan Ganesh and is based in Bangalore. The company has more than 800 employees and a roster of 2000 tutors.
Marjorie Scardino, Pearson?s Chief Executive, said: ?TutorVista is an innovative and effective education company that we have worked with and respected for several years. This acquisition – which we believe is the largest transaction in education in India by any company ? signals our excitement about the vitality of India?s education sector.?
John Makinson, Chairman of Pearson India, said: ?Today?s acquisition underlines Pearson?s commitment to education and skills development in India. The investment in TutorVista gives us control of the world?s largest online tutoring business and, crucially, a solid platform on which to build a leading presence in the Indian private schools sector.
?As the future chairman of TutorVista, I look forward to working even more closely with Krishnan Ganesh and his extraordinarily talented team in Bangalore.?
India’s government currently invests $40bn each year or three per cent of GDP in education, while Indian consumers spend more than $40bn on private educational institutions and services.
Both segments of the market are growing rapidly as a result of government commitment to increase the quality of and access to learning opportunities as a means of sustaining economic growth and reducing poverty.
TutorVista will be integrated into Pearson?s education business in India and will enhance its presence in the school market in India and in tutoring across the globe in schools and higher education, claimed the company.
The TutorVista acquisition follows recent investments in both acquisitions and organic growth opportunities in China, Brazil, Southern Africa and Nigeria.
Pearson expects the acquisition to enhance Pearson?s adjusted earnings per share and return on invested capital in 2012, its first full year.
