Author Solutions bought by Pearson and

Pearson has acquired self-publishing company Author Solutions Inc for $116m (£74m) in cash, with Penguin c.e.o. John Makinson saying "self-publishing has moved into the mainstream of our industry".

Formed in 2007, ASI generated approximately $100m of revenues in 2011, according to a Pearson statement, growing at an average annual rate of 12% over the past three years, with its revenues stemming primarily from services to authors. The company has worked with 150,000 authors to publish, market and distribute 190,000 books, with approximately 1,600 staff located mainly in Bloomington, Indiana and Cebu City, the Philippines.

In a statement, Penguin said the acquisition gives it "a leading position in this fast-growing segment of the publishing industry and brings significant opportunity for the two companies to collaborate".

The statement said ASI's strengths lie in "online marketing, consumer analytics, professional services and user-generated content", with Penguin contributing "design, editorial and sales skills, and its strong international presence", as ASI looks to expand outside the US.

Read more Pearson buys Author Solutions, will integrate with Penguin.