GRANADA Learning, a company originally formed by ITV, which supplies classroom test materials, is reported to be up for sale.

Its prospects are thought to have been enhanced by schools minister Ed Balls' plan to scrap SATs for 14-year-olds in England.

Granada Learning, now owned by private equity outfit Veronis Suhler Stevenson, sets ability tests for children in primary and secondary schools which are based on reasoning rather than recall of facts.

VSS bought the company from ITV for £53m in 2006. It is believed to have put a £55 price tag on it now.