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Pearson invests $127 million in TutorVista to increase its stake in the company to 76%

UK-based publishing firm Pearson, which owns Pearson Education, Penguin Books and The Financial Times, has increased its shareholding in Bangalore-based education company TutorVista to a controlling 76 per cent stake for $127 million. Pearson acquired a minority stake in TutorVista in June 2009 and this transaction takes Pearson’s total investment in the company to about $139 million.

UK-based publishing firm Pearson, which owns Pearson Education, Penguin Books and The Financial Times, has increased its shareholding in Bangalore-based education company TutorVista to a controlling 76 per cent stake for $127 million. Pearson acquired a minority stake in TutorVista in June 2009 and this transaction takes Pearson’s total investment in the company to about $139 million.

Marjorie Scardino, chief executive officer, Pearson, has 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, Pearson India, has added, “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.”

“This is a great development for the Indian education sector with world’s largest education company, Pearson, substantially increasing its presence and participation in India,” K Ganesh, founder and CEO, TutorVista.com, has said. “We look forward to serving the global market through our online services and the Indian market with our technology-led affordable content-augmented now with Pearson’s strengths and capabilities.”

K P Balaraj, managing director, Sequoia Capital and an early investor in TutorVista, has said, “Ganesh and his team have built an amazing, profitable and high growth business from seed stage idea a few years ago. We are very proud and happy to have believed in TutorVista’s vision from the early days and have been impressed with its rapid growth. They have accomplished, probably for the first time in India, the creation of a US consumer internet brand built entirely from India.”

Founded in 2005 by Krishnan Ganesh, TutorVista provides online tutoring services to students, supplies digital content and technology platforms to schools, operates a network of coaching centres across southern India, and offers a complete suite of education services like curriculum design, teacher training, technology solutions and school administration to schools.

India’s government currently invests $40 billion each year in education, while Indian consumers spend more than $40 billion 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.

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