PEARSON jumped despite market jitters yesterday after announcing the acquisition of German educational materials firm Stark from Syntegra Capital.
Pearson expects the acquisition to enhance adjusted earnings and to generate a return above Pearson’s cost of capital from 2012, its first full year after acquisition. The purchase is subject to regulatory approval.
Stark had revenues of €20m (£17.4m) last year, and has gross assets estimated at €32.6m.
John Fallon, chief executive of Pearson’s International business, said: “Stark is already highly respected by German teachers, students and parents; with access to Pearson’s digital solutions, it can play a bigger role in helping students to learn more effectively.”
The acquisition, which was for an undisclosed sum, is the latest installment of Pearson’s core growth strategy following the sale of its 61 per cent stake in Interactive Data Corporation (IDC) in May 2010.
It has spent more than $1.4bn since raking in $2bn from the IDC sale.
City A.M. Reporter