Core buys Princeton unit

MUMBAI: Core Projects and Technologies, a global education management systems provider, said on Monday it has acquired a unit of US-based education company The Princeton Review for $20 million. The acquisition, which was first reported by ET, will add approximately $24 million to Core���s global revenues over the next four quarters after the buyout.

Core is among the handful of companies in the education sector that are listed on the Indian bourses. The sector has been a hot favourite of foreign investors, given the government���s plans for education spending, but Core, unlike peer Educomp, has not been able to attract interest from prominent investors. This is because some high net worth individuals, including a scam-tainted operator, were rumoured to be active in the stock, which was among the best performers in 2008, said the fund managers.

The company has been in news in past months after the stock had plunged almost 50% amid the market talk that its shares pledged by some high net worth individuals were sold after margin calls by brokers were not met. Shares of Core Projects and Technologies were up 5% at Rs 47, after it announced the acquisition.