Zi Corporation (ZICA) has sold its Beijing-based Oztime and English Practice online businesses to Archer Education Group.
Zi says it will receive a significant non-controlling equity stake in Archer, a private company with schools in Vancouver, Toronto and Hamilton, Canada.
Under the terms of the agreement, Zi receives 4.1 million shares of Archer, of which 1 million shares are subject to an escrow agreement and may be released upon attainment of certain financial objectives of Oztime.
Michael Lobsinger, Chief Executive Officer of Zi Corporation, commented, "We are excited to see Oztime as part of Archer given its sharp focus on the opportunities associated with international education and its record of success thus far. The sale of Oztime to Archer in return for an equity position alleviates Zi from the allocation of management and resources to Oztime and allows Zi to participate in Archer's value creation."