Pearson acquires TutorVista for Rs. 577 Crores

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pearson acquires tutorvista

pearson acquires tutorvista

UK-based  Pearson, which is one of world’s largest  publishing and media groups has acquired a controlling stake of 76% in TutorVista, an integrated education services company from its founders K Ganesh and Meena Ganesh for Rs 577 crore.

This makes it one of the largest deal in the Indian education sector. Pearson already had a 17.2% minority stake in the company that it acquired in June 2009.

The deal values TutorVista at Rs 960 crore or $213 million. Sequoia Capital, which invested $5 million for a 16% stake, will take home around $35 million-almost seven times its investment-for a four year-old startup. Other investors-including Lightspeed Ventures and Manipal Education and Medical Group, which held 10% and 11% respectively will also make four to five times return for their investments in the last three years.

Commenting on the deal, 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.”

Ganesh said he had started TutorVista to provide affordable education services and content globally. “Together with Pearson, we can make this happen even faster and help millions of students achieve their educational goals,” he said.

TutorVista is Serial entrepreneur Ganesh’s another blockbuster startup after CustomerAsset which was bough by ICICI and renamed FirstSource.

With this acquisition Pearson has strengthened its tutoring business as TutorVista provides English language coaching courses for university entrance exams and out-of-class tuition to K-12 school children for SAT (scolastic aptitude/assessment test), ACT (American College Testing), AP and other exams, services to K-12 schools. It  uses VOIP to connect instructors in India with school and college students in North America. It also supplies digital content and technology platforms to private and government schools and coaching assistance to 10,000 students across a network of 60 centres in South India .

Tutorvista has 800 employees and a roster of 2,000 tutors.

Ganesh is said to have first thought of the idea of online tutoring when he found parents in the US and the UK criticize the education system.

Pearson also has another joint venture in India, vocational education centres branded IndiaCan, with publicly traded learning solutions company Educomp, which develops vocational and professional services for the Indian market.