LONDON (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 (£193.65 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.
Chief executive John Fallon said U.S. school publishing had been an important part of Pearson for many years, and he was pleased to have found a new owner committed to its future.
“The sale frees us up to focus on the digital first strategy that will drive our future growth,” he said.
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.
Reporting by Paul Sandle; Editing by Kirsten Donovan