Arch,
I feel your observations are correct. I think Sylvan has always been one of the major contenders for Edusoft and would fit nicely in their strategy. They are Headquartered only 5min. from my home in Baltimore and have been on a steady growth pattern for several years. They are known for their ability to acquire and absorb smaller companies.
In September 97, Sylvan purchased The Wall Street Institute. The business is "the learning center concept" that entails private instruction catering to the skilled and professional.(mostly in Europe) The method of instruction is by conventional means instructor, supplimented by various resources. This method works but is expensive and requires group participation at specific times just like school. Computers are used to augment the instructional process but are not the primary or even a highly used secondary means of teaching. Quality ESL courseware that utilizes current multimedia and sound recognition just isn't widely available. Edusoft remains the leader in this area.
My guess here is (this is a wild ass guess and a hype story)
Sylvan wants or wanted Edusoft.
It's the perfect addition to growing the ESL and Foreign Instructional marketplace. Your own "top of line" software provider and pipeline specializing in ESL,vocational and Technical coursewares that are for non English speaking young adults . Why be burdened with licensing and competing when you can own.
Sylvan bids, Degem declines.
Degem considers Edusoft their prize possession and will not part below fair value.
Sylvan bulks, Degem says they'll do it alone. Edusoft conceives Compu-lingual.
Now who has the better model. Expensive instructors, strictly scheduled in mass.or Come as you please, sit down, learn language cheaply. The computer language center model market is focused on the skilled and profession, wanting to learn and not necessarily in need of continuous supervision. It's the same market as Sylvans WSI.
Then, sylvan sees the better way and Degem gives up the prize.
blah,blah,blah yes
I managed to buy at the bottom today. Could go lower but shouldn't.
Below 30 mil cap. Both Industries software and educational are doing good. Momentum investors have exited. A consolidation before an advance I think.
I have a few follow up ?'s for CEO. Will E-mail and pass on any replies. |
