U.S., China online education firms to merge

HONG KONG, Oct 13 (BestGrowthStock) – Online education companies
Eleutian Technology and Idapted Ltd said on Wednesday that they
will merge, bringing together the U.S. and Chinese companies in
the fast-growing $100 billion market for online English
instruction.

Backers of the new company, which will retain Eleutian’s
name, include Cheyenne Capital and Gobi Partners, as well as
former Kleiner, Perkins partner Russell Siegelman and Xu
Xiaoping, co-founder of New York-listed Chinese education company
New Oriental Education & Technology Group Inc (EDU.N: ), Eleutian
said in a statement.

The terms of the deal were not disclosed.

Under the merger, Kent Holiday will remain as president and
CEO, while Idapted Cjief Executive Adrian Li will become general
manager for China.

“By combining with Idapted, its excellent technology
platform, its talented China-based engineering team, and its
supply of American voice-only tutors, Eleutian Technology can
accelerate its growth and more successfully (pursue) the $100
billion market for English language instruction,” Robert Grady,
chairman of the new company, said in a statement.

China’s online education sector is growing fast, but is also
becoming increasingly competitive. Other players include New
Oriental, ChinaEdu Corp (CEDU.O: ) and China Distance Education
Holdings Ltd (DL.N: ).
(Reporting by Doug Young; Editing by Chris Lewis)

U.S., China online education firms to merge