Pearson snaps up 76% in TutorVista; invests another $127M
British media group Pearson Plc is acquiring Bangalore-based education services firm TutorVista Global Pvt Ltd by increasing its stake to 76% for $127 million. Pearson had picked up around a 17% stake in TutorVista in June 2009 and with this deal has invested a total of around $139 million in the firm.
January 18, 2011 / 15:09 IST
British media group Pearson Plc is acquiring Bangalore-based education services firm TutorVista Global Pvt Ltd by increasing its stake to 76% for USD 127 million. Pearson had picked up around a 17% stake in TutorVista in June 2009 and with this deal has invested a total of around USD 139 million in the firm.
The current deal involves Pearson picking up another 59% stake for USD 127 million, valuing the six year old company at USD 215.24 million (nearly Rs 1,000 crore).The company, founded by serial entrepreneur K Ganesh, had attracted interest from a host a private equity majors in round where it was expected to raise USD 50 million.TutorVista has raised venture funding from investors like Sequoia Capital India and Lightspeed venture partners, and later also attracted strategic investors like Manipal Education and Medical Group (MEMG) besides Pearson. These investors hold 55% stake in TutorVista while Ganesh and his management with stock options hold the rest. TutorVista holding entity had so far raised USD 38 million in its rounds of venture funding.TutorVista was founded in 2005 as an online tutoring firm and has since then expanded its presence across the value chain. It provides digital content and technology platforms to private and government schools under long term contracts currently serving 3,300 classrooms. Its online tutoring business reaches 10,000 students per month. TutorVista also has test preparation and tuition business, where it operates a network of 60 centres. It also provides services like curriculum design, teacher training, technology solutions and school administration services to K-12 schools. Pearson expects the acquisition to enhance Pearson
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