Pearson has sold its U.S. schools course materials business to the private equity groups
Nexus Capital Management LP for $250 million.
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 provides textbooks and resources for students from kindergarten to 12th grade.
Chief executive 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. “The sale frees us up to focus on the digital first strategy that will drive our future growth,” he said.
Pearson has been trying to find a buyer for this division of their company for more than a year.
Following the repayment of the vendor note, Pearson said it was entitled to 20% of all future cash flows to equity holders and 20% of net proceeds in the event the business is sold.
According to Nexus Capital Management the additional consideration had been structured to provide Pearson with the potential to capture future upside in the US K12 courseware adoptions market over the coming years.