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- Pearson announced Tuesday that it will sell its online education services, including its online program management company, to private equity firm Regent.
- Regent will pay the British publisher 27.5% of the service’s adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, annually for six years. Regents will also pay Pearson 27.5% of other proceeds if the equity firm liquidates the online services business.
- Pearson Online Learning Services works with more than 450 programs at more than 30 institutions worldwide, according to the company’s website.
Pearson’s OPM is losing one of its biggest clients, Arizona State University, in June. It also lost 1,000 students in the first half of 2022 compared to last year. These struggles reflect similar problems with OPMs across the higher education sector, as they face decline in revenue, registration and customers, along with increased control by legislators.
Excluding its contract with Arizona State, Pearson Online Learning Service generated about $189 million in revenue and had $32 million in adjusted operating losses in 2022. It had roughly $138 million in gross assets at the end of last year.
The sale is not expected to materially impact Pearson’s adjusted operating profit in 2023, according to a press release from the firm.
“The deal demonstrates further progress in reshaping Pearson’s portfolio towards future growth opportunities centered around lifelong learning,” the company said.
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