VCampus Acquires Prosoft Learning
E-learning provider VCampus has announced it will acquire Prosoft Learning, which operates the vendor-neutral Certified Internet Web Professional (CIW) certification program. Based on Prosoft’s profits during the fiscal year 2005, the move is expected to more than double both VCampus’ total revenues and its certification-related earnings. However, apart from a handful of organizational and personnel shuffles that typically come with these kinds of deals, things won’t change all that much, said Dr. James Stanger, vice president of certification and product development at Prosoft Learning.
“I don’t anticipate major changes,” Stanger said. “There might be management-type changes, but I don’t see massive layoffs (happening). This is what has been emphasized to me. Our operations should stay pretty much the same, and I really believe this will make us more cash-positive.”
Under the terms of the agreement, VCampus will pay about $2.3 million to acquire all of the newly issued capital stock of the newly reorganized Prosoft. VCampus also will assume certain liabilities and obligations of Prosoft, including essential trade payables, as part of the reorganization. “We’re doing a restructuring, but it’s all fairly standard, with the end result that we’ll be purchased by VCampus,” Stanger said of the deal. “The deal is at the early stages. Normally, it would be an easy purchase. It’s slightly more complex, due to some investor-based debts we’ve accrued over the past six or so years.
“Rest assured that all our certification programs will remain alive and well throughout,” he added. “In fact, this deal, when complete, promises to bring more money and stability to our programs, as well as increased distance learning and testing options, which are VCampus’ strengths. VCampus promises to bring to us new distance learning and assessment capabilities that we’ve had to outsource. I’m excited about the possibilities.”
Stanger said the move had changed his job in one respect: He’s got a lot more to do these days. “Things have actually gotten much busier for me. Currently, I’m moving forward with updates and additions to CIW, CTP and CCNT. I’m talking daily to (Thomson) Prometric, (Pearson) VUE, courseware writers and others about projects.”
For more information, see http://www.vcampus.com.