The Anglo-Dutch media company Reed Elsevier has invested $25 million in Irish educational software firm, Riverdeep. The move increases Reed Elsevier's holding in Riverdeep to 3.8 per cent.
In a statement Riverdeep said Reed Elsevier had purchased 1.39 million newly-issued American depositary shares at $18 each.
Riverdeep also announced it has formed a strategic alliance with US based Harcourt Education Group, which was recently acquired by Reed Elsevier.
The companies plan to co-develop a number of digital educational products. The new products will be distributed by Harcourt under the Harcourt brand while Riverdeep will be paid development fees and receive royalties from sales.
Mr Barry O’ Callaghan, executive chairman of Riverdeep said: "We have reached an inflection point for the development and acceptance of e-textbooks by the education market."
Mr O’Callaghan said: "Together we have a unique opportunity to create a new approach to learning that reflects the changing education environment and provides students with access to educational tools that best optimize their performance."
"Our alliance with Harcourt, together with Reed Elsevier’s equity investment in Riverdeep, further endorses our strategy for, and vision of, the market opportunity in digital educational publishing", he said.
Despite the announcement, shares in Riverdeep were trading some 13 cents down at euro 13.30 this afternoon on the Irish stock exchange.
