Pearson buys out Educomp’s stake in vocational training company IndiaCan Education
10 Apr 2013
Britain's Pearson Plc, the world's largest book publisher, has taken full control of vocational training company IndiaCan Education by acquiring Educomp's 50 per cent stake, for an undisclosed sum.
The move comes a month after the London-based company headed by John Fallon, took 100-per cent ownership of the Bangalore-based learning services company TutorVista after earlier acquiring a majority stake.
Pearson and Educomp had set up IndiaCan Education joint venture in 2009, with Pearson reportedly investing $17.5 million.
For nearly a year the 169-year old company has been trying to buy out Educomp from the JV, but the deal did not take off since Educomp was seeking a premium for its stake, while Pearson did not want to pay a hefty sum since IndiaCan Education is yet to make profits.
Gurgaon based IndiaCan Education operates in the Indian market through three divisions, ETEN, a professional training unit that prepares students sitting for CA, CS and Civil Service exams, with tutorials delivered by 'star faculty' via satellite technology to locations across India.
The PurpleLeap division, which operates out of Bangalore, works with colleges and higher education institutions to calibrate students' readiness for employment and a government division that focuses on training in areas such as hospitality, retail, ITeS and manufacturing through its extensive network of centres across India.
Bhavneet Singh, president at Pearson India, said ''Taking complete ownership of IndiaCan represents another milestone for our ambitious plans in India and follows a similar buy out at TutorVista, the Bangalore-based learning services company.''
''IndiaCan has developed market leading expertise in retail and vocational training and support that will supplement Pearson's goal to help improve learning outcomes for students throughout India,'' he added.
Armed with over $2 billion it received from 2010 asset sales, Pearson has been investing the money in strategic acquisitions, mainly in China, India and the US.
Pearson entered the English language-training market (ELT) in China with the acquisition of two companies that cater to the needs of adults and school and college students. It also acquired China's Global Education and Technology Group, for $155 million in cash.
It has also invested in both acquisitions and organic growth in Brazil, Southern Africa and Nigeria.
In 2011, it purchased US online educational services company EmbanetCompass from an investor group led by Technology Crossover Ventures and Knowledge Universe, for $650 million in cash.
Founded by Samuel Pearson in 1844, London-based Pearson is the world's leading education company.
It has four main operating divisions, Penguin Group, Financial Times Group, Pearson North America and Pearson International.
