Pearson Sells K-12 Business for $250MM

Long on the list of 'discontinued operations' Pearson has finally completed a sale of their troubled K-12 education business.

From Reuters:

British education company Pearson said on Monday it had agreed to sell its U.S. K12 courseware business to Nexus Capital Management LP for $250 million as it shifts its focus from textbooks to digital.  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.

Following the repayment of the vendor note, Pearson said it would be entitled to 20 percent of cash flows to equity holders and 20 percent of proceeds in the event the business was sold.

Publishing Technology Report 2019 - available 2/25/2019