EDI, the qualification accreditation and educational assessment company, has received an offer from Pearson Plc, the education, business and consumer publishing giant.
The acquisition, at 200p per share, values EDI at £112.7 million (a 61% premium to the share price on Friday March 4th). Pearson announced that the acquisition will enable the creation of an enlarged qualifications group (Pearson owns Edexcel, one of EDI’s principal competitors in the UK market).
The Pearson board has received undertakings from shareholders representing c. 30% of EDI’s shares in issue to accept the offer – including institutional investors JO Hambro and Hargreave Hale.
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Pearson plc, (Pearson) is an international media and education company with its principal operations in the education, business information and consumer publishing markets. The Company delivers the content in a range of forms and through a variety of channels, including books, newspapers and online services. It offers services, as well as content, from test creation, administration and processing to teacher development and school software. It operates in more than 70 countries worldwide, its major markets are the United States (55% of sales) and Europe (22% of sales). Pearson consists of three worldwide businesses: Pearson Education, The FT Group and The Penguin Group. In May 2012, the Company acquired Certiport, Inc. from Spire Capital Partners. In July 2012, Navis Capital Partners sold PT Efficient English Services to Pearson. In October 2012, the Company acquired EmbanetCompass from an investor group led by Technology Crossover Ventures and Knowledge Universe. more »
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I would be interested to see comments from holders on prospects for this bid. It will put a tiny growth company, into the very slow moving Pearson. Clearly a great deal for Pearson, with their grip on the US market in educational testing. What prospect for an independent future, or even a higher bid for EDD?
fourayes on 5th April 11