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Educomp Sells Its 50% Stake in IndiaCan To Pearson; Selling To Consolidate

Education company, Educomp has sold 50% of its stake in IndiaCan, a vocational training business to Pearson, its JV partner in the venture,  according to BSE filing. IndiaCan is a JV that was started between Educomp and Pearson in 2009 to tap on the vocational training market in India. Educomp in its press release has stated that this move is part of their "consolidation strategy", a third in a series of exits from non-core businesses. The company says that this stake sale has been made to avoid the need to fund losses and other capital needs of a non-core business. It is not clear if IndiaCan has been making losses that Educomp has not been able to fund. Educomp's Consolidation:  Educomp further plans to focus on digital content & IP offering and asset backed offerings like schools and colleges.  Note that Educomp Online is Educomp's online education platform. It is not clear if there are other IP offerings or any in the pipeline. But it is clear that Educomp plans to keep its focus on digital. In January 2013, Authorgen, a subsidiary of Educomp Solutions Ltd, had raised Rs 22 crore from Kaizen, a private equity firm and a German media company, Bertelsmann. Authorgen through its website, WizIQ.com enables education service providers to create virtual classrooms and also convert document to flash. It appears that Educomp has also sold 50% stake in Eurokids International Ltd to a group of investors led by GPE India, last month. In 2011, Educomp merged Studyplaces.com after being acquired in 2010.  It is worth noting that…

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