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Education group Pearson PLC PSO agreed to sell Pearson Online Learning Services (POLS) to Regent, a private equity group, for a deferred sum.
The business sale concludes the strategic review revealed in August 2022 and marks further progress in reshaping Pearson’s portfolio centered around lifelong learning.
Regent will pay Pearson 27.5% of POLS’ positive Adjusted EBITDA each year for six years.
The deal includes a further contingent payment equal to 27.5% of the proceeds received by Regent in relation to any monetization event of POLS following the completion of the transaction.
The proceeds of this transaction will be used for general corporate purposes within Pearson’s capital allocation framework.
The POLS business had gross assets of £113 million and net assets of £78 million as of Dec. 31, 2022. The business, which excludes Pearson’s contract with ASU, generated £155 million of revenue and £26 million of adjusted operating losses in 2022, with around £5 million of stranded costs, which have now been eliminated.
The company noted the impact of the sale on Pearson’s 2023 adjusted operating profit will be dependent upon the timing of transaction completion but is likely to be immaterial.
Price Action: PSO shares are trading lower by 0.10% at $10.30 in premarket on the last check Tuesday.
