Pearson Buys U.S. Online School Network
Wall Street Journal – Simon Zekaria
Pearson PLC on Thursday said it has acquired U.S.-based online schooling network Connections Education for $400 million in cash, as the U.K.-based publishing giant ramps up its extensive North American education operations. Pearson acquired the company from an investor group led by private-equity investment firm Apollo Management LP. Connections Education supplies “virtual” education services to students in grades K-12 and learning programs to educational institutions globally. It operates online public schools accredited in 21 U.S. states, serving more than 40
,000 students who choose not to attend traditional schools, Pearson said. The service has produced revenue growth of more than 30% in each of the past three years and expects to generate income of approximately $190 million in fiscal 2011, Pearson said.
