Pearson agrees to buy Education Development International

Pearson, the publisher of the Financial Times, has agreed to buy Education Development International. The Offer is 200 pence in cash for each EDI Share and values EDI’s entire issued ordinary share capital at approximately £112.7 million.

The Offer Price represents a premium of approximately 61 per cent to the Closing Price of 124.0 pence per EDI Share on 4March 2011, the last business day prior to the commencement of the offer period; and 73 per cent to the average Closing Price of 115.6 pence per EDI Share over the three months prior to 4 March 2011.

EDI is a leading provider of education and training qualifications and assessment services, with a strong reputation for the use of information technology to administer learning programmes and deliver on-screen assessments.

Pearson believes that the addition of EDI will complement Pearson’s existing work-based learning business and will create an enlarged qualifications group offering a comprehensive range of vocational and academic services to the UK and international markets. Pearson believes that its financial resources, international scale and strengths in assessment, publishing and technology will also enhance the offering to EDI’s customers.

John Fallon, Chief Executive of Pearson’s International Education Business, said, “In EDI we have found a dynamic partner who shares our commitment to education and training. In the UK and around the world, we will be even better placed to work with employers and training partners to develop high quality apprenticeships and related qualifications. In this work, we will help companies to be more competitive and make their staff more employable.”

Nigel Snook, Chief Executive of EDI, said, “The Offer Price to acquire the EDI business reflects the value created for shareholders over the past 10 years through the hard work and commitment of the staff and management team. We now look forward to working with our Pearson colleagues to take the business on to its next stage, creating a world-class organisation supporting vocational education and training programmes in the UK and internationally.”

Citi is acting as financial adviser and corporate broker to Pearson. Brewin Dolphin is acting as financial adviser and corporate broker to EDI.

UK, London

Related articles:

%d bloggers like this: