Pearson buys out partner Educomp in vocational JV

Takes complete control of vocational training company

Pearson today announced the buyout of Educomp's shares in IndiaCan, the vocational training joint venture set up by the two companies in 2009. With the acquisition of Educomp's 50 per cent shareholding in IndiaCan, Pearson has taken complete control.

In February this year, Pearson acquired the entire stake in Bangalore-based education services company TutorVista and took complete control.

Bhavneet Singh, president, Pearson English & Informal Learning, said: "Taking complete ownership of IndiaCan represents another milestone for our ambitious plans in India and follows a similar buy out at TutorVista. IndiaCan has developed market-leading expertise in retail and vocational training and support that will supplement Pearson's goal to help improve learning outcomes for students throughout India."

IndiaCan delivers skills training, helping young people to gain employment and those in work to sharpen their skills to gain better jobs. It operates in the Indian market through three divisions, ETEN, PurpleLeap and the government division.

ETEN prepares students taking the chartered accountancy, company secretary and civil service exams, with tutorials delivered by ‘star faculty’ via satellite technology to locations across India. PurpleLeap operates out of Bangalore and works with higher education institutions to calibrate students' readiness for employment.

The government division focuses on training in areas such as hospitality, retail, information technology-enabled services and manufacturing through a network of centres.

Educomp’s shares closed at Rs 58 on the Bombay Stock Exchange today, down 3.5 per cent compared to the previous day's close.