indalytics global education insights - december 2012

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INDALYTICS ADVISORS DECEMBER 2012

G I Global

Education

Insights

GLOBAL EDUCATION INSIGHTS I DECEMBER 2012

© Indalytics Advisors l www.indalytics.com l [email protected] 1

CONTENTS

Africa Becoming an Attractive Destination ................................................. 2

Increasing activity by Private Players .......................................................... 3

Collaboration in Education Space ............................................................... 3

New Courses and Institutes ........................................................................ 4

Increasing Funding and Deal Activity .......................................................... 5

New Education Regulations in the Middle East .......................................... 6

List of Institutions and Organizations ......................................................... 7



AFRICA BECOMING AN ATTRACTIVE DESTINATION

UAE based Global Education Management Systems Limited (GEMS) is planning to

invest approximately US$650 million in emerging markets, including in Africa and the

Middle East, by 2017. GEMS, which operates private schools in 10 countries, is planning

to spread across 25 – 40 countries by 2017.

GEMS entered Kenya with its first private school in 2012. The company has plans to

rapidly expand in other African countries such as Ghana, Mozambique, South Africa,

Tanzania and Uganda.

Similarly in South Africa, Polokwane—based Northern Academy Independent

Secondary School has been acquired by life assurer Old Mutual, South Africa’s biggest

sovereign wealth fund PIC, and Johannesburg Stock Exchange listed education company

Curro Holdings.

The acquisition, worth ZAR150 million (US$17 million), is being seen as start of deals in

South African education sector. Established in 1996, Northern Academy currently

provides education to approximately 3,900 learners.

African nations are also attracting investments in education from other parts of the

globe. Several Indian institutes are planning to invest in African countries such as

Nigeria. Private Indian educational players, such as Educomp, Edusoft, and Amity

University are planning to provide education to approximately 4.7 million children of

primary school, who do not attend school. As per UNICEF, approximately 40% of

Nigerian children aged 6 — 11 do not attend any primary school.



INCREASING ACTIVITY BY PRIVATE PLAYERS

GEMS is also going to open a school in Switzerland. The 14,000-square-metre private

school will be built overlooking the Geneva-Lausanne highway, at a cost of

approximately SFR162 million (US$174 million), will be operated by GEMS. The school

will start in 2013, and will teach approximately 1,000 students under International

Baccalaureate. It will primarily cater to employees of multinational firms in the Lake

Geneva region.

In India, the All India Council for Technical Education (AICTE) has allowed private

companies to start technical education institutions. As per AICTE, any company having

turnover of at least INR 100 Crore (US$18.26 million) per year for previous 3 consecutive

years, will be allowed to setup technical institutions — providing training in engineering

and technology, pharmacy, architecture & town planning, and hotel management

catering technology.

The move is seen as an initiative to bridge the gap between demand and supply of

technical labor in India. AICTE is the government body, responsible for providing

technical education in India.

COLLABORATION IN EDUCATION SPACE

London based outsourcing services provider, Capita Plc, has got a "preferred bidder"

status on a GBP1.7 billion (US$2.8 billion) contract to run educational services in

Staffordshire. The 20–year contract will be a joint venture between Capita and the local

authority, where Capita will look after improvement and maintenance of schools, along

with catering and introduction of other additional educational subjects. Capita will also

invest GBP24.9 million (US$40.5 million) in the first year and a further GBP6.6 million

(US$10.7 million) over the following three years, into the joint venture.

In the US, distributor of digital and physical books and entertainment products, Baker &

Taylor, is joining hands with the Penguin Group to introduce Penguin e–books into

selected libraries across the country. Baker & Taylor, which already has a distribution

network across libraries, will make Penguin's e–books to Los Angeles Public Library and

Cuyahoga County Public Library — via its Axis 360 digital media library platform.



Abu Dhabi’s Tourism Development and Investment Company (TDIC) is partnering with

UK based independent school, Cranleigh School, to open an elite campus on Saadiyat

Island. The campus, which will be ready by third quarter of 2014, will be the largest

school campus in Abu Dhabi, spread over seven hectares of land. It is expected to

provide co-educational facilities to over 1,600 students in several subjects.

In the UK, Microsoft, Intel and RM education have partnered for a program to provide

hardware and software to government–funded schools across UK, at a discount.

According to the partnership, the three companies will together provide a discount of

up to 30% to the government schools. The move is seen as a step to leverage the

increasing use of technology in education by schools and students.

Irish Literacy support software, Texthelp Limited, has entered into a partnership with

Chinese education resources and services company, China Education Alliance, Inc.

Under the partnership, Texthelp will provide exclusive rights of its English learning

software, English Hero to China Education Alliance. The software will be distributed

among Schools and students across China, to help them learn English.

Doha Academy of Tertiary Studies (DATS), Education Trust, Mauritius, has signed a

Memorandum of Understanding (MoU) with the International Center for Chemical and

Biological Sciences (ICCBS), Karachi University. The MoU is aimed at facilitating

academic exchange and scientific cooperation between both the institutions. The

institutes are expected to work collectively on several disciplines, such as marine,

chemical and biological sciences.

NEW COURSES AND INSTITUTES

In Europe, The Isle of Man College of Further and Higher Education is expected to

launch a new course in i–gaming. The postgraduate qualification will start from January

2013, and will help in providing skilled labor to gaming companies. The qualification will

be delivered through a work–based higher education framework, which will be

accredited by the University of Chester.



Malaysia is inviting foreign universities to setup their campuses in the country. The

country has invited organizations, including foreign universities to setup campuses at

the Pagoh Higher Education Hub (HPTP) — a 506 acre site in the Mukim of Jorak, Muar

district, Johor. Malaysia is planning to make HPTP a higher education hub, with

Universiti Tun Hussein Onn, the International Islamic University, Malaysia, the

Universiti Teknologi Malaysia Research Centre and the Pagoh Polytechnic being setup

in the first phase.

London–based College of Law, has been approved by the British government, to be

converted into country’s first for–profit university. The college will now be called

University of Law. It is one of the largest professional law schools in the world,

imparting education to more than 7,000 students each year on various undergraduate

and postgraduate programs.

Clearance for private educational institutions by the government is in lines to open the

higher education sector to more competition. In order to qualify for the university title

in Britain, private institutions should fulfill the prerequisites of growing to a credible

size, and have degree-awarding powers.

INCREASING FUNDING AND DEAL ACTIVITY

The most talked about deal was the sale of education unit of McGraw–Hill companies to

Apollo Global Management LLC. The US$2.5 billion sale will help the new company

migrate to a more subscription–based business model, which is expected to have more

predictable revenues, and less manufacturing and inventory costs.

US based BetterLesson, which offers a social network for teachers has received grant

money of US$3.5 million from the Bill & Melinda Gates Foundation. The network offers

a free site to teachers for uploading their lesson plans and curriculum, and a premium

offering to schools and educational institutions, to create an intranet for teachers in a

certain district.

The website currently has approximately 160,000 teachers and 20 paying school

networks. BetterLesson has over last three years, already raised US$2.7 million from

angel investors and Venture Capital Firms.



University of Michigan spinoff — LectureTools — has been acquired by Virginia based

innovative education company, Echo360. LectureTools is a web–based student response

system, which helps the teachers to connect to their students in classrooms. The

company was started by Perry Samson, professor at University of Michigan. The

acquisition is expected to help Echo360 expand its specialization in “blended learning”

technology.

Microsoft Corporation has reaffirmed its commitment to education with a US$250

million, five-year renewal of ‘Microsoft Partners in Learning’. ‘Partners in Learning’

comes under Microsoft YouthSpark, which is aimed at connecting youth around the

world with greater opportunities for education, employment and entrepreneurship.

Microsoft, through the program, has trained more than 11 million teachers and reached

more than 200 million students since 2003. The investments will help the program grow

to approximately 20 million teachers worldwide by 2018. Microsoft’s total investment in

the program is estimated to be approximately US$750 million over a period of 15 years.

NEW EDUCATION REGULATIONS IN THE MIDDLE

EAST

In Qatar, the government has introduced new regulations for private schools, to reserve

25% of the seats for Qatari students. As per the revised licensing rules by the Supreme

Education Council (SEC), in order to obtain new license for setting up a school, private

players will have to abide by the guidelines, However the guidelines will not be

applicable in case of community schools. Other guidelines by the SEC mandate schools

to comply with the Qatari curriculum standards, such as allocating weekly hours for

teaching Arabic language and Islamic studies to Muslim students. Further, all students

will have to be taught Qatari history, as per the national standards.

A similar regulation has come up in the UAE, where private schools have been asked to

teach compulsory national identity lessons. The new regulation, aimed at emphasizing

national identity in school, will also mandate schools to include courses in include

courses in Emirati society, Islamic studies and Arabic. Further, they will be required to fly

a UAE flag and play the national anthem at morning assembly.



LIST OF INSTITUTIONS AND ORGANIZATIONS

Amity University

Apollo Global Management LLC

Baker & Taylor

BetterLesson

Bill & Melinda Gates Foundation

Capita Plc

China Education Alliance, Inc.

College of Law, London

Cranleigh School

Curro Holdings

Doha Academy of Tertiary Studies

Echo360

Educomp

Edusoft

Global Education Management Systems

Limited

Intel

International Center for Chemical and

Biological Sciences

International Islamic University,

Malaysia

Isle of Man College of Further and

Higher Education

LectureTools

McGraw–Hill

Microsoft Corporation

Northern Academy Independent

Secondary School

Old Mutual

Pagoh Higher Education Hub

Pagoh Polytechnic

Penguin Group

PIC

RM education

Texthelp Limited

Universiti Teknologi Malaysia Research

Centre

Universiti Tun Hussein Onn

University of Law, London

University of Michigan



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Publication Volume: 12-012

Publication Date – December 2012

© 2012 Indalytics Advisors Private Limited

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