Monday 18 February 2019 9:15 am

Pearson sells US school textbook arm for $250m

Pearson announced the $250m (£194m) sale of its US school textbook division today as it pursues a simplification strategy as it doubles down on digital.

Read more: Pearson's shares fall amid declining US revenues

The education publisher expects to net $25m today and the full sum over the next three to seven years from the sale of its K12 courseware arm to Nexus Capital Management.

Pearson will also receive 20 per cent of all future cash flows to equity holders and 20 per cent of any proceeds if the business is sold.

The company said the move provides it “with the potential to capture future upside in the US K12 courseware adoptions market over the coming years”.

Chief executive John Fallon said: “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 programmes, we will still serve schools across America and we will now be better placed to focus on the areas in which we can best help their students to be successful in their studies and future careers.”

Read more: Pearson agrees to sell FT building for £115m

Pearson has seen its US business decline in recent years, focusing instead on cost cutting to drive profits in its latest set of results as it changes tack to rely on digital to fuel growth.

Share:
Tags: