An international media and education company, providing educational materials, technologies, assessments and related services to teachers and students. Owner of The Financial Times and part owner (47%) of Penguin Random House. I have a holding in my income portfolio (epic code: PSON).
Today Pearson announced that they have agreed the sale of The Mergermarket Group to funds advised by BC Partners for an enterprise value of £382m, payable in cash; this values the business at 15x operating income.
Mergermarket was acquired by Pearson back in 2006 for £101m plus a subsequent earn-out; revenues for the period to 31 December 2012 were £100m with operating income of £25m and before tax of £23m.
This is part of Pearson's strategy to focus on global education through digital technologies. This will again raise questions as to the future of the Financial Times within the Pearson Group.