Bertelsmann has created a new business unit for its education activities.
The unit, called Bertelsmann Education Group, launched yesterday (Wednesday 9th September) in New York and will be effective immediately. It aims to create €1bn of revenues in the medium term.
It will contain the university network Arist Education Systems; Alliant International University; the e-learning provider Relias Learning; the education services provider Synergis Education; its stake in the online education provider Udacity; and Bertelsmann’s shares in the two University Ventures Funds and their investments.
Within Bertelsmann, the Bertelsmann Education Group – like the music subsidiary BMG – is managed as part of the Corporate Investments division. The individual businesses within the Bertelsmann Education Group will continue to operate independently in the marketplace under their own names and brands.
The c.e.o. of the new unit, which is headquartered in New York, is Kay Krafft, who has managed Bertelsmann’s education activities since 2014.
Thomas Rabe, chairman and c.e.o. of Bertelsmann, said: “Education is one of Bertelsmann’s key growth platforms, and we want to expand this segment into our third mainstay of business, alongside media and services, in the medium term.
“Establishing the Bertelsmann Education Group is an important step on this path. We now have relevant businesses in each segment of the education sector that is strategically important to us – and we will follow up the many advances we’ve made in recent months with further steps.
“In the medium term, we want to generate around €1bn in revenues with the activities of Bertelsmann Education Group, and help give more people access to education.”
Krafft said: “In recent months we have greatly expanded our education activities, so we are now pooling them under a shared organisational umbrella. This enables us to have a more coordinated management of our education businesses and to better connect them with the various Bertelsmann subsidiaries. In this way we create the best possible conditions for further growth – both organically and through further acquisitions. Bertelsmann’s internationally proven content and service expertise, our large network, and our long-view, entrepreneurial approach make Bertelsmann a perfect partner for education companies seeking to further expand their business domestically and to access global markets.”