Pearson Divests International Online Program Management Business To Regent

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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.
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