TIDMPSON
RNS Number : 8355O
Pearson PLC
16 October 2012
Press release
16 October 2012
PEARSON ACQUIRES EMBANETCOMPASS:
EXPANDS CAPACITY AND EXTENDS LEADERSHIP IN FAST-GROWING MARKET
FOR ONLINE LEARNING
Pearson, the world's leading learning company, is announcing
today the acquisition of EmbanetCompass from an investor group led
by Technology Crossover Ventures and Knowledge Universe, for $650m
in cash.
EmbanetCompass partners with leading non-profit colleges and
universities in North America to provide fully online learning
solutions for more than 100 university programmes. It provides a
full range of services including: programme design and development,
marketing and student recruitment, faculty training and support,
data-driven student retention and learning analytics; student
services (counselling, tutoring, mentoring), technology support and
launch funding.
Institutional services are one of the fastest growing areas of
the US higher education market. Out of 6,700 degree-granting
institutions in the US, approximately 175 institutions engage
third-party vendors to power online programmes. Of a total
post-secondary student population of 22 million, 2.5 million
participate in purely online programmes with over 6 million taking
at least one online course. Pearson believes the number of students
learning online and the number of institutions serving those
students will grow rapidly, as academic institutions seek low-risk
and cost-effective ways to better serve new and existing customers
by boosting student access, affordability, achievement and
retention.
EmbanetCompass revenues have grown strongly in each of the last
three years and are expected to be approximately $130m in 2012. The
transaction is subject to a Hart-Scott-Rodino review. Pearson
expects the acquisition to enhance adjusted earnings per share and
to generate a return on invested capital above Pearson's weighted
average cost of capital from 2014.
For Pearson, the acquisition builds on and broadens our leading
position in the fast-growing online educational services market
established through our partnerships with institutions such as
Arizona State University, California State University Online (CSU
Online) and the community college systems in West Virginia,
Kentucky, Tennessee, Iowa and Colorado. It also makes our content
businesses more valuable and brings the opportunity to apply
EmbanetCompass skills and technologies in new segments and
geographic markets. It extends Pearson's investment in education
services and technologies that have both a direct connection with
the learner and a strong record of enhancing student achievement
helped by data analytics.
Will Ethridge, CEO of Pearson North America, said, "The
acquisition of EmbanetCompass extends Pearson's investment in two
areas where we see great opportunities for growth and impact-online
education and educational services. The combination of Pearson and
EmbanetCompass creates the premier provider of online learning and
education services and will further enable us to advance the goals
of the institutions and students we serve with innovative and
proven programs."
Founded in 1995, with locations in Chicago, Orlando, and
Toronto, EmbanetCompass has 580 employees and is headed by Steve
Fireng. He will stay on as CEO of EmbanetCompass and as a senior
executive at Pearson.
Steve Fireng said, "In the next five years, we expect nearly 4
million fully online learners will be in this market," said Steve
Fireng, EmbanetCompass President and CEO. "By joining Pearson, the
world's premier provider of educational content, programs, services
and platforms, EmbanetCompass has a tremendous opportunity to
strengthen our relationships with academic partners, expand
programs and services at our current academic partners, and
continue to expand into new exciting markets both domestically and
around the globe."
ENDS
For more information:
Luke Swanson / Simon Mays-Smith / Charles Goldsmith +44 (0)207 010 2310
About Pearson
Pearson is the world's leading learning company. Its major
businesses are: Pearson, the global leader in education, providing
print and digital learning materials and services used by millions
of students of all ages every year; The Financial Times Group,
which has an international network of business and financial
newspapers and online services that are read by millions of
business executives and investors every day; and Penguin Group,
which is one of the pre-eminent names in consumer publishing, with
an unrivalled range of fiction and non-fiction, bestsellers, and
classic titles. Through its books, newspapers and online products
and services, Pearson helps people of all ages to live and learn.
See www.pearson.com.
About EmbanetCompass
EmbanetCompass is the largest provider of technology-enabled
services to traditional non-profit postsecondary educational
institutions seeking to launch online degree programs across degree
levels and disciplines. Its comprehensive outsourced solution
includes all of the services necessary to develop an online
program, including program strategy, design and development,
academic services, marketing and student recruitment, program and
student services, and technology services. Academic partners retain
complete control over admissions decisions, instruction and
financial aid, and confer all degrees. EmbanetCompass's top
priority in partnering with an institution is to offer the highest
quality services to protect and enhance the academic partner's
brand and reputation. See www.embanetcompass.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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