More Acquisitions in Education Tech and Services

Core Projects, an emerging provider of IT services, particularly in the education space has acquired K-12 Division of The Princeton Review Inc for $20 million. The acquisition will add close to $24 million to CORE global revenues, yielding an EBITDA of 24 percent in the first full year of operations according to VCCircle.

The company had earlier acquired multiple companies in the education sector. They are:

• US based KC Management Group - A provider of school management systems - for about $30 million
• UK-based Azzurri Education - An educational software provider - for about $12 million
• Hamlet Computer Group - An assessment administration systems maker - for $3 million

Another sector report - 100000 crore opportunity

Further to the earlier post, RNOCS (Industry research firm) has just released report - “Indian Education Services - A Hot Opportunity” on the Indian Education Sector. They are estimating the spending in sector to cross Rs 100,000 crores by 2011-12. Its a paid report though (~1100 USD); Will see how can I get access to it.

Private Players Educating India, Spending to Cross Rs 100,000 Crore

India has historically been an education center. And maintaining this trend is the country’s private sector that is spending increasingly on the education market to provide quality professional education.

According to our new research report “Indian Education Services - A Hot Opportunity”, the education services market in India will be driven by rising private expenditure on education and increasing demand for professional courses. The private spending on education is expected to increase 13% to 15% in next four to five years. It is estimated that by 2011-12, it will surpass Rs. 100,000 Crore from just Rs. 26,883 Crore in 2000-01. The rising private expenditure on education will account for 4% to 5% total private expenditure by 2011-12.

Majority of the expenditure on higher education is done through private funding which accounts for more than 50% of the total spending on higher education in the country. The reason for high private share is that the Indian government majorly emphasize on promoting elementary and secondary education and not on higher education. Spending on higher and technical education accounted for close to 11% of the total government spending on education in 2006-07.

The private expenditure will continue to dominate the total expenditure on higher education in future also. It is anticipated that the rising demand for quality education coupled with improving education infrastructure will give a new dimension to the Indian education services market.

“Indian Education Services - A Hot Opportunity” is an extensive research on the education market in India. It provides a comprehensive overview of the education services market in India and gives qualitative and quantitative insight into the market. This report underlines the structure of higher education in India, future opportunities for the education market and its associated fields, and the challenges to be faced. It also gives detailed account on the higher education infrastructure in India, number of medical & dental colleges, technical institutions in the country, number of students enrolled with various universities and colleges, and annual intake in the technical courses by streams.

Indian Education sector report by Copal Partners

The education space in India is getting fairly good coverage now, with multiple firms and research houses coming up with their perspectives on the sector.

Copal Partners, the Gurgaon based financial research and analytics firm has recently published a sector report on Indian Education. This report gives a good overview of the Indian education system and various participants. However it falls short of discussing any specific companies. Good read to get initial thoughts. You can download the report here.