CL Educate today acquired Eten, the test preparation business division of Pearson’s IndiaCan Education for a Rs 6 crore and revenue sharing.
Eten is a pioneer in tech-based satellite coaching for CA and IAS aspirants and has a wide VSAT network.
“The deal consideration involves a staggered payment of Rs 6 crore over 30 months and 4 per cent revenue share for next three years,” CL Educate said in a statement.
The divestment is part of Pearson’s global strategy to exit non-core businesses in the country.
With this acquisition, the CL network expands to 192 centers with five high-tech broadcast studios reaching around 93,000 students from an earlier network of 162 centres and 83,000 students.
The deal will help increase profitability as CL courses can now be delivered via VSAT reducing delivery costs in existing Eten physical centres in small town, it claimed.
The coaching market was estimated at Rs 37,800 crore in fiscal 2016, and has been growing at a CAGR of 14 per cent from fiscal 2009. The industry is expected to grow at an average rate of 13-14 per cent per annum over the next five years according to a Crisil report.