Thursday, February 21, 2002

Sylvan Learning Acquires a Controlling Interest in Walden U. for $8-Million By MICHAEL ARNONE Sylvan Learning Systems Inc. has acquired a controlling interest in Walden University, an online provider of graduate degrees. Sylvan paid $8-million to increase its stake in the institution to 51 percent. The takeover was planned for more than a year, said Robert H. Scales Jr., chief executive officer at Walden. Sylvan bought 41 percent of Walden's ownership shares last year. The two for-profit education companies agreed that if Sylvan were pleased with its relationship with Walden, Sylvan would acquire an additional 10 percent this year, Mr. Scales said. The new ownership arrangement took effect February 1. The partnership pairs Sylvan's marketing strength with Walden's academic reputation and accredited status, said Paula R. Singer, president of Sylvan's Online Higher Education division. Walden wanted to improve its name recognition in the education market, and Sylvan wanted to work with a respected, accredited institution, she said. Walden will become part of Sylvan's Online Higher Education division and will continue to offer master's and doctoral degrees in education, health and human services, business, and psychology, Mr. Scales said. No major management or curriculum changes are expected. Walden has seen increased enrollments in all of its disciplines, Ms. Singer said. Sylvan will focus on helping Walden create a new online master's degree in business administration and achieve accreditation so that it can offer bachelor's degrees in business. Sylvan will also help Walden market its other programs, especially those in psychology. Since last year, Walden has seen its enrollment increase to nearly 2,700 from about 1,500, Mr. Scales said. Much of that growth came from a new master's degree in education for people specializing in elementary-level reading. Walden is offering the education degree with Canter and Associates, another education company Sylvan acquired, said Ms. Singer. Sylvan formed a partnership with Walden as part of its strategy to move into postsecondary education, said Steve Drake, Sylvan's vice president for communications. Since 1999, when it opened its Sylvan International University division, the company has increasingly focused on providing degrees and training to adults, as well as offering tutoring to children, he said. Last year, 60 percent of the company's revenues came from providing postsecondary education. The acquisition will also increase Walden's international visibility, Mr. Scales said. Sylvan International University has controlling interests in institutions in countries around the world, including Mexico, France, and India. Easy-to-print version E-mail this article

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