closeATA Announces Strategic Investment in China Tutorial Services Company Master Mind Education
Company Expands Into K-12 Education Space
BEIJING, CHINA -- (Marketwired) -- 10/31/14 -- ATA Inc. ("ATA" or the "Company") (NASDAQ: ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced the Company has entered into an agreement to make a strategic investment in Master Mind Education ("Master Mind"), a provider of digitized services to K-12 after-school tutoring institutions in China. This follows ATA's engagement by Master Mind to be the provider of equipment, service and support for its MTS technology to Master Mind, thus enabling instructors within its member network of tutoring institutions to use ATA's latest technologies to disseminate educational content.
Pursuant to the terms of the agreement, ATA will invest a total of US$5.0 million, representing a 33% stake in Master Mind. The funds are expected to be used toward Master Mind's integration of ATA's technologies into its digitized service offerings, enhancing the functionality of its product offerings, as well as expanding its network of K-12 after-school tutoring institutions.
Mr. Steven Ge, Master Mind's founder and CEO, said, "The strategic cooperation between Master Mind Education and ATA is highly complementary to both parties' market expertise and use of resources when it comes to the K-12 after-school tutoring market in China. Master Mind's existing knowledge of the overall China K-12 after-school tutoring market and its development of an extensive network of after-school tutoring institutions will be combined with ATA's expertise in assessment and training. Both Master Mind and ATA believe that our strategic partnership will enable us to achieve a leading position in the mobile digital wave spreading through the education market, particularly the K-12 after-school tutoring market in China. Our team at Master Mind has always felt that collaborating with the right company and management team was more important than gaining capital resources, which is the reason we chose ATA as our partner."
Mr. Kevin Ma, ATA's Chairman and CEO, stated, "We are very pleased to have established this relationship with Master Mind Education. While we aim to better serve working professionals in China with our joint venture with New Oriental Education & Technology Group that will offer mobile and online education and training, we are excited to extend our core competence of testing services and assessment technologies to this promising K-12 after-school tutoring market. Our investment in Master Mind allows the company to enhance the effectiveness of its digitized training services to K-12 after-school tutoring institutions and their students throughout China by using ATA's MTS technologies and services. We look forward to working closely with the Master Mind team on transforming the teaching-learning process into a seamless digital experience for its students and teachers. By bringing our tools to the K-12 after-school tutoring classroom, ATA's goal is to not only improve communication between teacher and student but to also help families better understand their students' needs and progress. "
Background on Master Mind Education
Master Mind Education was founded in 2013 as a digital service provider for China's K-12 schools that offer after-school tutoring. The company was formed to provide training schools a digital platform from which to manage teaching facilities and resources. Master Mind serves its K-12 after-school tutoring network through its 360° digital service system, its "parent letter" and "Education Box" series of products.
About ATA Inc.
ATA is a leading provider of advanced testing technologies in China. The Company offers comprehensive services for the creation and delivery of assessments based on its proprietary testing technologies and test delivery platform. ATA's testing technologies are used for professional licensure and certification tests in various industries, including information technology services, banking, teaching, securities, insurance, and accounting. As of June 30, 2014, ATA's test center network comprised 3,012 authorized test centers located throughout China. The Company believes that it has the largest test center network of any commercial testing service provider in China.
ATA has delivered more than 59.6 million billable tests since ATA started operations in 1999. For more information, please visit ATA's website at www.ata.net.cn.
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Investor Relations
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Source: ATA Inc.
Released October 31, 2014