(Alliance News) - Daily Mail & General Trust PLC on Friday said it has agreed to sell its education technology business Hobsons in two separate transactions for USD410 million total.
The media company said Hobsons' Naviance and Intersect businesses will be sold to Folsom, California-based K-12 education technology solutions provider PowerSchool Group LLC for USD320 million and will become part of the PowerSchool platform.
Meanwhile, Hobson's Starfish business is being sold to Washington DC-based education company EAB Global Inc for USD90 million.
Naviance is a K-12 college and career readiness solution, Intersect is a higher education student match-and-fit offering, and Starfish is a higher education student retention and success platform.
In DMGT's financial year ended September 30, Hobson generated adjusted operating profit of GBP6 million from revenue of GBP85 million.
The company noted the disposals will increase the focus of its portfolio, resulting in it operating in 4 sectors, compared to 10 in 2016. With education technology removed, these are consumer media, insurance risk, property information, and events & exhibitions.
It added the new cash will be used to strengthen its cash position and enhance its financial flexibility.
"These two transactions mark another major milestone in DMGT's transformation and are a clear demonstration of the benefits of our strategy. Hobsons was restructured in 2017 to focus on high-growth opportunities in Student Success. The combination of operational execution and organic investment drove a significant increase in capital value," said Chief Executive Paul Zwillenberg.
Shares in Daily Mail & General Trust were trading 4.5% higher at 815.00 pence each on Friday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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