Pearson Sells K12 U S Textbook Unit For 250 Mln Yahoo Finance

Participate in Share Chat. Set up virtual watchlists and portfolios See more trades and share info. Check out our new Alternative Investment section.Click here LONDON, Feb 18 (Reuters) - British education company Pearsonsaid on Monday it had agreed to sell its U.S. K12courseware business to Nexus Capital Management LP for $250million as it shifts its focus from textbooks to digital. Nexus will pay an initial $25 million and a further $225million by way of a vendor note due in the next three to fiveyears for the business, which provides textbooks and resourcesfor students from...

Chief executive John Fallon said U.S. school publishing hadbeen an important part of Pearson for many years, and he waspleased to have found a new owner committed to its future. 18.02.2019 <img width="20" height="20" src="https://the-digital-reader.com/wp-content/uploads/2023/10/nate-small.png" class="user-avatar-inline img-circle" style="max-height: 20px; width: auto; margin-left: 4px;" alt="Nate Hoffelder" /> Nate Hoffelder 2 Comments <img fetchpriority="high" decoding="async" class="aligncenter size-large wp-image-131835" src="https://the-digital-reader.com/wp-content/uploads/2019/02/Depositphotos_195999660_xl-2015-620x300.jpg" alt="" width="620" height="300" /> Pearson announced on Monday that they had agreed to sell its US K-12 textbook business to Nexus Capital Management for $250 million. Nexus will pay an initial $25 million and a further $225 million in the form of a vendor note to be paid over the next three to seven years.

Following the repayment of the vendor note, Pearson will be entitled to 20% of all future cash flows to shareholders as well as net proceeds if the division is sold and the market improves. Pearson CEO John Fallon said U.S. school publishing had been an important part of Pearson for many years, and he was pleased to have found a new owner committed to its future. Education publishing giant Pearson has announced the sale of its US K-12 courseware business to private equity firm Nexus Capital Management for $250 million as it shifts its focus from textbooks to digital. According to a statement, Nexus will pay an initial $25 million and a further $225 million by way of a vendor note due in the next three to five years for the business, which... “We will now be better placed to focus on the areas in which we can best help students to be successful”

Following the repayment of the vendor note, Pearson will be entitled to 20% of all future cash flows to shareholders as well as net proceeds if the division is sold and the market improves. Pearson’s chief executive John Fallon said school publishing in the US has been an important part of Pearson for many years, but that the sale frees up the company to focus on a digital-first... International publishing conglomerate, Pearson has agreed to sell its school course material business in the United States to the private equity group Nexus Capital Management. The company had been trying to find a buyer for its US textbook division for more than a year. Nexus Capital and Pearson have locked the deal at $250 million. Out of this Pearson will receive 10% of the deal among ($25m) in cash initially and Nexus Capital will pay the remaining amount throughout 3 to 7 years.

A part of the MTSE 100 group, said that the sale was an important part of its simplification program. Jon Fallon, CEO of Pearson has said that the sale of textbook business liberates the company to increase focus on the digital first strategy which is expected to drive future growth of the company. The UK based publishing group has been suffering challenges for a long time in the US courseware Market at both the school and college level. The market registered a shifting trend among students at higher education levels, who have been opting to buy the second-hand textbook and becoming increasingly reluctant to pay higher prices for a new version of... This has created immense pressure on Pearson’s sales figures. As per the deal, Nelson will be paying 20% of future cash distribution to shareholders or 20% of net proceeds on a future sale of the business, if the school market improves.

However, these proceeds will be dispatched only after the full amount of pursuance price is paid by Nexus Capital. Fallon further added that the company would continue to serve across United State and it will now be in a better position to focus on the Areas which will help the students to be... The US K12 courseware business contributed about £20 million to Pearson’s total operating profit in 2018, as it generated £364 million of revenues. The company officials have said that the transaction is expected to be completed by the end of the first quarter of 2019, and cash proceeds generated in the course of the transaction will be...

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