Boston, MA 07/23/2014 (wallstreetpr) – The ATA Inc.(ADR) (NASDAQ:ATAI) declared to sign up an agreement with New Oriental Education & Technology Group in order to form a joint venture to offer mobile and online education and training to the working professionals of China. ATA is one of the biggest providers of advanced testing technologies along with testing-related services in the People’s Republic of China.
The existing online education website Koolearn.com, of New Oriental, the leading provider private educational service in the country, will be used by ATA to channelize mobile and online education among the working professionals. The distributional channels of New Oriental will also be used to escalate the work.
Online website and mobile apps to expand the education
The collaboration will build up a new mobile app and online website on the purpose of education and training that can provide knowledge on accounting, healthcare and finance sectors to the workforce of the nation.
Stakeholders in the joint venture
According to the terms and conditions of the agreement, ATA will endow RMB13.5 million while New Orient will invest RMB16.5 million in a new joint venture. The investment represents ATA to hold 45% of the stake and New Orient 55-% stake of the newly launched company. According to the deal, a new joint venture will get ultimate access to the knowledge management program of New Oriental. Also, it will get entree to live and archive broadcasting platforms, technical resource, and courseware authorizing tools as well as learning tools, free and limitless access to ATA’s student resources, and software and other technical resources.
Both the companies expect confirming the executive management team keeping an eye on the joint venture in few weeks, with the assumption of officially initiating the training and online educational website by the end of this year.
Executive talk
The ATA’s CEO, Cheng-Yaw-Sun, commented that ATA Inc. (ADR) (NASDAQ:ATAI) is delighted to be included in the deal with New Oriental, the China’s leading educational company. The CEO, in addition, stated that the joint venture will strengthen ATA’s online business and expand it.
