Safanad Limited, a global principal investment firm, and K12 Inc. founder and former CEO Ron Packard announced the launch of Pansophic Learning as well as the acquisition of assets from K12 Inc.
The new company plans to make additional investments in education products and services ranging from pre-K to college both in the US and globally in the coming years.
Ron Packard stepped down as CEO of K12 Inc. in January 2014 in preparation of the formation of Pansophic Learning. With the launch of Pansophic, Packard also resigned from the K12’s board of directors.
It has been a rough year for K12 Inc. which culminated in a class action lawsuit that accuses K12 Inc. and its former CEO of misleading investors.
In January, Safanad planned to acquire select assets from K12 Inc. including
- the International School of Berne
- Capital Education
- K12 Inc.’s interest in an existing Middle East joint venture currently operating with a Safanad affiliate
- the UK businesses that K12 Inc. launched
- the rights to market K12’s new pre-kindergarten product, EmbarK12 outside the U.S.
- other select assets and licenses
The above listed assets were responsible for $20.8 million in revenue and had direct operating losses of approximately $3.0 million for K12’s fiscal year ending June 30, 2013.
In the press release issued by K12 Inc. on the sale to Pansophic, the assets are listed as
- K12’s post-secondary business
- K12’s interest in an existing Middle East joint venture currently operating with a Safanad Limited affiliate
- a private international brick and mortar school
According to Pansophic’s website, its current businesses are Capital Education, US Schools, Middle East Schools and the International School of Berne.
The management and staff of the acquired companies will join Pansophic Learning which is headquartered in Mclean, Virginia.
In April investors filed a federal lawsuit against K12 Inc., accusing the company of misleading investors by putting forward overly positive public statements during much of 2013, only later to reveal that K12 had missed key operational and financial targets. The lawsuit also alleges that Packard “reaped the rewards” of the bullish projections by selling millions of dollars worth of stock in the months before an October announcement of disappointing news sent its price plummeting according to Education Week.
- Education Company K12 Inc and Safanad Limited are announcing the intention to form a new company. | Safanad
- Safanad and Ron Packard, Founder of K12 Inc., Launch Pansophic Learning and Acquire Assets from K12 to Pursue Global Education Opportunities | MarketWatch
- K12 Inc. Completes Sale of Select Businesses | MarketWatch
- Investor Lawsuit Targets K12 Inc. and Stock Sales of Former CEO | EducationWeek