Pearson, the education and information company, is acquiring Wall Street Institute from an affiliate of the The Carlyle Group and Citi Private Equity for USD92m in cash.

Wall Street Institute provides spoken English training for adults through a proprietary learning model combining web-based content, class-based instruction and digital and printed learning materials.

Wall Street Institute currently has approximately 340 franchised learning centres in 25 territories across Asia, Europe, the Middle East and Latin America. Its major markets currently include France, Italy, Turkey, Chile, Venezuela, Colombia, Hong Kong, Korea and Taiwan.

It also directly operates a small number of learning centres, primarily in Germany, as flagship centres for testing new products and sharing best practice across the franchise network. 

Wall Street Institute earned revenues of approximately USD60m in 2009. Pearson expects the acquisition to be earnings neutral in 2011 as it invests to expand the business in high growth markets, and to enhance adjusted EPS and generate a return above Pearson's cost of capital from 2012.

The acquisition reunites Wall Street Institute with Wall Street English, China's provider of English language training for adults, which has 44 centres across China and which Pearson acquired from Wall Street Institute in 2009.

The combined business will be led by David Kedwards, currently chief executive of Wall Street English in China.

Pearson intends to support Wall Street Institute’s instructional process with its content, assessment and technology, and to include premium content from other parts of the company including Penguin and the Financial Times. Pearson plans to retain the Wall Street Institute brand.
 
John Fallon, chief executive of Pearson's international education business, says: "The growth of English is a powerful global trend. English language skills unlock opportunities for students of any age to progress in their education, their careers and their lives. Wall Street English has become a highly valued part of Pearson and we have learnt a great deal from its people and their approach to effective language learning. Just as Wall Street English provided a platform for Pearson’s expansion in English teaching in China, so Wall Street Institute provides that platform on an international basis. This is an exciting and important move for Pearson that will accelerate our goal of being the world’s pre-eminent provider of English language learning content, technology and services."