Pearson Acquired Majority Stake in TutorVista

UK-based publishing house, Pearson announced on 18 January 2011 that it acquired a majority stake in TutorVista, a Bangalore based online education services company. The acquisition marked the biggest acquisitions in the Indian education sector. Pearson’s holding in TotorVista will increase to 76%. Pearson had bought 16% in TutorVista in 2009 for Rs 54 crore. Pearson will also acquire an additional 4% of the equity by buying out shares of minority shareholders. Upon buying out the stakes of minority stake hold Pearson will ultimately own 80% of the company that will function as an independent entity with the balance 20% owned by promoters and the management team. The deal will lead to exits to the other equity investors in the firm- Sequoia Capital India , Lightspeeed Ventures, Silicon Valley Bank and education major Manipal Group who together contributed to the total funding of $33 million raised by TotorVista over the last five years.

TutorVista was set up in 2005 and currently provides online tutoring services to about 10,000 students each month. It uses Voice-Over-Internet-Protocol and online whiteboards to connect instructors in India with school and college students. In association with the Manipal Group, TutorVista also provides curriculum design, teacher training, technology solutions and school administration services to 11 schools across India.