Pearson PLC on Tuesday announced it had completed a strategic review for one of its loss-making businesses, culminating in a disposal.

The education publisher said it has agreed to sell Pearson Online Learning Services, its international online program management business.

It will sell the business to Regent, an acquisition-focused global private equity firm. The deferred consideration will comprise 28% of POLS positive adjusted earnings before interest, tax, depreciation and amortisation each year, for six years following completion.

‘Pearson will not share in any loss making periods,’ it confirmed.

It will also receive a contingent payment of 28% of proceeds received by Regent for any ‘monetisation event’ of the POLS business following completion.

The sale follows the launch of a strategic review for the business back in August, which came ahead of the end of Pearson’s 10-year contract with Arizona State University in June.

The disposal forms part of Pearson’s efforts to reshape its portfolio ‘towards future growth opportunities centered around lifelong learning’.

At December 31, the POLS business had gross assets of £113 million and £78 million. Excluding the ASU contract, it generated £155 million in revenue in 2022, and an adjusted operating loss of £26 million, and a pretax loss of £52 million.

‘The impact of the sale on Pearson’s 2023 adjusted operating profit will be dependent upon the timing of transaction completion but is likely to be immaterial,’ the publisher said.

Shares in Pearson were up 0.8% to 845.80 pence each in London on Tuesday morning.

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