Sylvan Learning to Create $500 Mln Internet Venture
Baltimore, Feb. 24 (Bloomberg) -- Sylvan Learning Systems Inc., which tutors students and trains teachers, said it will create a $500 million venture to bolster Internet-related education companies, sending its shares up as much as 22 percent.
Sylvan Learning will commit $300 million in cash and assets to the new venture and will have a controlling interest. Private investment firm Apollo Management LP, including its Rare Medium Group Inc., agreed to another $100 million. The other $100 million will come from other investors.
The goal of the venture is to invest in and foster growth of education-related start-up companies. Sylvan said this allows it to expand more into the use of the Internet for education and training and stay focused on its main business.
The assets committed include Sylvan Learning's current Internet investments, like Caliber Learning Network Inc., OnlineLearning.net, ZapMe! Corp. and the company's online tutoring venture, eSylvan. Rare Medium, an Internet professional services firm, will support the venture. Christopher Hoehn-Saric will be chairman and chief executive of the unit.
Sylvan will keep its Sylvan Learning Centers, Contract Education Services, English Language Instruction and Sylvan International Universities. Douglas Becker will be chairman and chief executive of Sylvan Learning Systems. Becker and Hoehn- Saric had shared the chief executive job for the past nine years.
Apollo partners Laurence Berg and Michael Gross will join the Sylvan board. Apollo and Rare Medium will be joined in their investment by an affiliate of Investor AB, a leading European investment firm with stakes in AstraZeneca Group Plc and Ericsson AB. Becker and Hoehn-Saric also will be investors.
The shares of Baltimore-based Sylvan Learning rose 1 9/16 to 14 1/2 in midday trading. Earlier, they reached 15 3/4. Before today, they had fallen 62 percent in the past year. Rare Medium shares rose 1 7/16 to 54 15/16.
Feb/24/2000 12:11
For more stories from Bloomberg News, click here.
(C) Copyright 2000 Bloomberg L.P.
Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News.
The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 2000 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P. |
