The announcement Tribeca parent Kaplan is to buy Finsia for $36 million is interesting news for the financial services industry. Not only will it contain competition in the area, but Finsia cut its Advanced Diploma of Financial Services from its list of courses last year, leaving rival Tribeca as the sole provider of the program. Also, Tribeca and Finsia are the two largest financial services education providers in the Australian market and by joining together their suite of services will expand to include higher education, vocational and professional development, and entry-level financial services courses.
The move also means the proposed $85 million conglomerate will have more power in the higher education market overall. There was talk when the Kaplan deal first went down that it would not be content to remain limited to the financial services area. Its size and take-up in this area could challenge universities, which are now forced to meet strict commercial pressures. In December 2005, Tribeca became part of international financial education and publishing conglomerate Kaplan in a $55 million deal. Tribeca was a listed company prior to the takeover and the offer was made after discussions in the past month.
At the time, it was said Kaplan intended to expand the business within financial services and over time into other areas of financial education. Kaplan is a major player in the provision of financial services training companies. It also owns Dearborn Financial Services, which provides securities and insurance training, Schweser Study Program, which offers the chartered financial analyst program for fund managers, and Financial Training Company, which specialises in accountancy. This deal makes financial services and higher education interesting spaces for the industry to watch.
