China Online Education Group Announces Acquisition of Kaola Reading

Rhea-AI Summary

China Online Education Group (NYSE: COE) has announced its acquisition of 100% equity interest in Beijing Xiangyue Education Technology Co., Ltd. (Kaola Reading). This strategic move, set to close in the first half of 2021, aims to enhance 51Talk’s curriculum and develop an English assessment system leveraging Kaola's reading assessment expertise. The acquisition will broaden course offerings, integrating Chinese courses alongside existing English education. Kaola Reading's technology uses AI to personalize learning experiences.

Positive

• Acquisition of Kaola Reading expected to enhance educational offerings.
• Development of an English assessment and rating system planned.
• Broadened course offerings to include Chinese education.

Negative

• None.

BEIJING, April 23, 2021 /PRNewswire/ -- China Online Education Group ("51Talk," or the "Company") (NYSE: COE), a leading online education platform in China with core expertise in English education, announced today that it has entered into a definitive agreement to acquire 100% equity interest in Beijing Xiangyue Education Technology Co., Ltd. ("Kaola Reading") a leading developer and provider of Chinese reading ability assessment systems and reading training systems in China, by issuing Class A ordinary shares of the Company through private placement. The Transaction is expected to close in the first half of 2021 in accordance with customary closing conditions.

Founded in 2016, Kaola Reading developed a graded Chinese reading standard, the Enjoy Reading (ER) Framework, in collaboration with the Machine Learning Laboratory of Peking University. Kaola Reading uses AI and machine learning technologies to assess and rate reading skills and make intelligent learning course recommendations based on each student's unique reading ability and interest. In May 2017, Kaola Reading launched its award-winning online Chinese learning app.

"We see clear strategic value in this acquisition," said Mr. Jack Jiajia Huang, Founder, Chairman and Chief Executive Officer of 51Talk. "Leveraging Kaola Reading's expertise in reading assessment, we plan to develop an English assessment and rating system that allows us to provide more targeted course offerings to our students, deliver enhanced learning experiences and outcomes, and add graded reading content to further diversify our curriculum portfolio. In addition, this acquisition broadens our course offerings to include Chinese courses, bringing a holistic learning experience to our students. We look forward to working closely with the Kaola Reading team and nurturing these new initiatives for our next phase of growth."

About China Online Education Group

China Online Education Group (NYSE: COE) is a leading online education platform in China, with core expertise in English education. The Company's mission is to make quality education accessible and affordable. The Company's online and mobile education platforms enable students across China to take live interactive English lessons with overseas foreign teachers, on demand. The Company connects its students with a large pool of highly qualified foreign teachers that it assembled using a shared economy approach, and employs student and teacher feedback and data analytics to deliver a personalized learning experience to its students.

For more information, please visit http://ir.51talk.com.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "aims", "future", "intends", "plans", "believes", "estimates", "likely to" and similar statements. Among other things, 51Talk's business outlook and quotations from management in this announcement, as well as 51Talk's strategic and operational plans, contain forward-looking statements. 51Talk may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about 51Talk's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: 51Talk's goals and strategies; 51Talk's expectations regarding demand for and market acceptance of its brand and platform; 51Talk's ability to retain and increase its student enrollment; 51Talk's ability to offer new courses; 51Talk's ability to engage, train and retain new teachers; 51Talk's future business development, results of operations and financial condition; 51Talk's ability to maintain and improve infrastructure necessary to operate its education platform; competition in the online education industry in China; the expected growth of, and trends in, the markets for 51Talk's course offerings in China; relevant government policies and regulations relating to 51Talk's corporate structure, business and industry; general economic and business condition in China, the Philippines and elsewhere and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in 51Talk's filings with the SEC. All information provided in this press release is as of the date of this press release, and 51Talk does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

China Online Education Group
Investor Relations
+86 (10) 8342-6262
ir@51talk.com

The Piacente Group, Inc.
Brandi Piacente
+86 (10) 5730-6200
+1-212-481-2050
51talk@tpg-ir.com

 

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SOURCE China Online Education Group

FAQ

What is the significance of COE's acquisition of Kaola Reading?

The acquisition enhances COE's curriculum with AI-driven reading assessment, enabling more targeted educational offerings.

When is the acquisition of Kaola Reading expected to close?

The acquisition is expected to close in the first half of 2021, subject to customary closing conditions.

How will the acquisition impact COE's educational services?

The acquisition will allow COE to integrate reading assessments into their programs and broaden their course offerings.

What technology does Kaola Reading utilize?

Kaola Reading employs AI and machine learning technologies for assessing reading skills and customizing learning experiences.

What is the focus of Kaola Reading's curriculum?

Kaola Reading specializes in Chinese reading ability assessment and training systems.