Pearson Sells Online Services Business

Pearson, the British education publishing company, has recently announced the sale of its online services business to the private equity firm, Francisco Partners. The sale includes Pearson’s Global Learning Platform (GLP) and the associated student information system, PowerSchool.

===Pearson Sells Online Services Business: What You Need to Know
Pearson’s online services business accounted for approximately 7% of the company’s revenue in 2019. The sale was made for $250 million, which is a significant loss compared to the $650 million Pearson paid for PowerSchool in 2015. The company’s decision to sell its online services business is part of its ongoing restructuring plan, which aims to focus on the company’s core educational publishing business.

The Global Learning Platform is a cloud-based learning management system with more than 7 million users worldwide. PowerSchool is a student information system used by over 45 million students and teachers across 80 countries. Francisco Partners plans to expand the business and invest in new technology to improve the services offered to schools and educators.

===Implications of Pearson’s Sale of Online Services Business
The sale of Pearson’s online services business marks a significant shift in the company’s strategy. By divesting from its online services business, Pearson can focus on its core educational publishing business and invest in digital platforms that support its print materials. The sale also provides Pearson with much-needed funds to pay down its debt and invest in new ventures.

For Francisco Partners, the acquisition of Pearson’s online services business provides an opportunity to expand its portfolio in the education technology sector. The deal aligns with the firm’s focus on investing in high-growth businesses that are transforming industries. Francisco Partners plans to work closely with Pearson’s management team to ensure a smooth transition of ownership and continued growth of the business.

Pearson’s sale of its online services business to Francisco Partners highlights the changing landscape of the education industry. With the rise of e-learning and digital technologies, education companies must adapt to remain competitive. For Pearson, the sale provides an opportunity to streamline its business and focus on its core strengths, while for Francisco Partners, it presents a chance to expand its presence in the education technology market. The future of the education industry remains uncertain, but the sale of Pearson’s online services business is a clear indication that companies must be prepared to adapt to survive.

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