K12 Inc., the largest for-profit provider of online learning, made a series of huge announcements on Tuesday, confirming that it will be forming a new company alongside investor group Safanad Limited while also alerting the public of a whole slew of top-level executive changes.
The publicly traded company born and bred in Herndon, Virginia shared some details about the new company, saying in a press release that the business will "focus on the expansion and integration of technology-based learning programs in pre-K through college across the globe through the management and expansion of several existing early stage businesses and targeted investments within the education services sector."
Under the proposed terms, the investor group led by Safanad Limited will own a majority stake in the new company. K12, on the other hand, will own a minority stake greater than 25 percent and contribute the "International School of Berne; Capital Education; its interest in an existing Middle East joint venture currently operating with a Safanad affiliate; the United Kingdom businesses that K12 recently launched; the rights to market K12's new pre-kindergarten product, EmbarK12 outside the U.S.," among other assets and licenses.
As for the changes on staff, Ron Packard, founder and former CEO of K12, has resigned. He will operate as the CEO of the new company, but continue to serve on K12's Board of Directors.
"I look forward to the opportunity to lead this new company," Packard said in a press release. "Our goal will be to bring in the additional capital needed to scale high-growth businesses and further the expansion of technology-based learning for students throughout the world. We will seek to grow these businesses as well as look at new investment opportunities and acquisitions.
"I founded K12 with the belief that technology could break down barriers and help transform education to provide families and teachers greater access to high quality education programs," he added." We've made tremendous progress and I believe we are on the cusp of accomplishing even more for students of all ages in every part of the world. I'm excited to return to my entrepreneurial roots with this new company while continuing to help K12 through my service on its Board of Directors and through K12's ownership in the new venture."
More details will be announced in the coming weeks. Stay tuned.
