Penguin publisher Pearson buys EmbanetCompass for $650 mn

Pearson, the publisher of Penguin books and the Financial Times, yesterday acquired US online educational services company EmbanetCompass from an investor group led by Technology Crossover Ventures and Knowledge Universe, for $650 million in cash.

The acquisition will help Pearson to expand its presence in the North American online learning market.

The acquisition is the second-largest for Pearson after it purchased Harcourt Assessment and Harcourt Education International in 2007 for a total of $950 million.

Founded in 1995, EmbanetCompass is the largest provider of technology-enabled services to traditional non-profit post-secondary educational institutions seeking to launch online degree programs across degree levels and disciplines.

EmbanetCompass functions through 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, 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.