Private equity company Bridgepoint has agreed to purchase Cambridge Education Group (CEG) from London firm Palamon Capital Partners. The acquisition deal is valued at GBP185 million, according to City A.M.

Palamon is a group that invests in service businesses. In 2007, the firm acquired a majority stake in CEG. According to the company, the sale of CEG would generate a capital gain of GBP141 million and a 14.6 times return on investment, the report explained.

CEG is a group that provides pre-university education to international students from over 95 countries. The firm caters to those students planning to enroll in universities in the UK, the US, and in continental Europe. Since 2007, the company's revenues have grown five times to around GBP90 million, the report said.

The education firm sought advice from MacFarlanes on the deal. Palamon was advised by Slaughter and May, City A.M. reported.

Chris Busby of Bridgepoint said of the transaction: "Our investment will provide the team with additional financial capacity and reach to accelerate its push further into international markets and realise its ambitions in a growing market."