Bertelsmann takes a controlling stake in United States-based Alliant International University in a step to diversify and expand into the business of operating universities. This is part of Bertelsmann’s strategy to make education a top priority. It has vowed to achieve 1 billion euros ($1.13 billion) in revenue from a global market which is estimated to be worth $5.5 trillion this year and $6.4 trillion by 2017. Of that market about $1.3 billion will be in the hands of private companies, while the rest will be controlled by governments.
Bertelsmann said it expected to seal similar deals in the future. “Over the next few years, we will build a network of universities that deliver innovative education programs in various fields of the health and human sciences,” Bertelsmann’s Chief Executive Thomas Rabe said.
He did not disclose the size of the investment, but a source familiar with the transaction said it was in the mid-double-digit range.
Last year Bertelsmann bought e-learning business Relias Learning for $540 million.
Source: Reuters
