Pearson sells US textbook business
UK educational publisher Pearson is selling its US textbook business to private equity group Nexus Capital Management and is shifting its focus to digital, reports the Financial Times.
Pearson’s US K12 courseware business provides textbooks and instructional resources to teachers and students in the United States. Under the US$250 million ($A350m) deal, Pearson will receive US$25 million ($A35m) in cash upfront, with Nexus paying the remaining amount over three to seven years.
‘The sale frees us up to focus on the digital-first strategy that will drive our future growth. Through our assessment, virtual school, advanced placement, and career and technical education programs, we will still serve schools across America,’ Pearson chief executive John Fallon said in a statement.
‘The broader US K12 market remains an important area of focus for Pearson and we are continuing to invest in faster growing digital services such as virtual schools and building on our strong position in US student assessment.’
The deal entitles Pearson to 20% of future cash distributions to shareholders from Nexus, or 20% of the net proceeds on a future sale of the business, once the full amount of the purchase price has been paid by Nexus.
According to Fallon, the sale will help Pearson to ‘become a simpler and more efficient company’.
Category: International news