Pearson Sells GEDU to Reduce its China Burden
New Oriental’s main competitor in China is GEDU, which was founded by Mr. ZHANG Yongqi, a former agent of Honeywell Beijing. GEDU received a USD 30m venture capital fund investment in 2006, and became listed on the NASDAQ in 2010. Pearson purchased GEDU for USD 294m in 2011, but ever since has experienced great difficulties in operating this division in China. As such, Pearson recently sold this division for USD80m, which was an operational loss of approximately USD140m, only hald of what Pearson originally expected. GEDU’s business scope includes training (IELTS, TOFEL, SAT, AP and ACT), international curriculum, study tours, and the operation of 500 training centres in 180 cities in China. The new owner is PuXin Education, a four-year-old K12 training provider.