LONDON (Reuters) – Education group Pearson said on Tuesday its flagship online program partnership with Arizona State University (ASU) would end in June 2023 after more than a decade.
The British company helped ASU rapidly expand its online learning services and resources, including playing a central role in its 2014 deal with Starbucks to offer eligible employees of the coffee chain full tuition reimbursement.
Pearson said the “highly successful partnership” had helped tens of thousands of students to reach their potential by obtaining a college degree.
It said the impact of the contract termination on profit would be modest in 2022 and 2023 and would be offset thereafter by re-directing investment to other opportunities.
It reiterated its 2022 financial guidance and said its medium-term guidance of mid-single digit compound annual revenue growth from 2022 to 2025, with relatively stable margins in the near term, was unchanged.
(Reporting by Paul Sandle; editing by James Davey)