(Sharecast News) - Educational publisher Pearson said it was selling its Online Learning Services (POLS) operation to private equity firm Regent for a deferred sum as part of a strategic review of its business.
The company on Tuesday said it would receive 27.5% of POLS' positive adjusted core earnings annually for six years from completion, excluding loss-making periods.
It will also receive a further contingent payment equal to 27.5% of the proceeds received by Regent in relation to any "monetisation event" of POLS.
POLS generated £155m of revenue and £26m of adjusted operating losses in 2022 with around £5m of stranded costs, which have now been eliminated.
The unit made pre-tax losses of £52m in 2022. 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, the company added.
Reporting by Frank Prenesti for Sharecast.com
Pearson (PSON)