Educomp enters 50:50 JV with UK-based Pearson

NEW DELHI: Education software solutions provider Educomp has entered into a 50:50 joint venture (JV) with the UK-based publishing house Pearson, said a person with direct knowledge of the development. The JV will offer vocational education business leveraging Educomp���s learning network and Pearson���s education content. An announcement is likely on Wednesday.

Pearson would be pumping in $17.5 million in the JV and an agreement has been signed in Singapore on Tuesday, a person familiar with the development told ET. He added both the companies are likely to invest an additional $20 million in the next five years in the new business. When contacted, Educomp���s spokesperson declined to comment.

The JV will provide Educomp access to Pearson���s content on vocational education. For instance, Pearson���s content on Spoken English alone has 3.5 million users globally. Besides, Educomp would be able to use Pearson���s content on vocational training in sectors such construction, automobiles and hospitality. "The JV will benefit both the companies tremendously," said a senior executive of Educomp, who asked not to be named.

Pearson will be able to tap the vocational education market through Educomp���s network. Pearson, an international media company, with businesses in publishing, education and business information, plans to aggressively expand its footprint in the Indian market. Recently, it reportedly picked up a strategic stake in TutorVista, a Bangalore-based e-learning firm for about $15 million.

In May 2008, Educomp had set up two JVs with Raffles Education Corp, a $2.78-billion private education group in the Asia Pacific region, covering India and China. The Indian JV offers study content for professional courses, while the Chinese JV was for K-12 business initiatives.