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Pearson sells Global Education business to Chinese firm Puxin for around USD$80mln

The FTSE 100-listed firm said GEDU, a provider of English language training and test preparation for Chinese students wishing to study abroad, generated revenue of £78mln and had an adjusted operating loss of £4mln.

Pearson plc (LON:PSON) has sold its Global Education (GEDU) business to Chinese education service provider Puxin Education for gross cash proceeds of around USD$80mln.

In a statement, the FTSE 100-listed firm said GEDU, a provider of English language training and test preparation for Chinese students wishing to study abroad, served 64,000 learners in 2016, generated revenue of £78mln and had an adjusted operating loss of £4mln.

READ: Pearson announces plans to cut a further 3,000 jobs and slash the dividend as turnaround enters next phase

The group said: “The sale marks progress in Pearson's strategic shift away from large-scale direct delivery services to focus on more scalable online, virtual, and blended services."

Pearson announced with its full year 2016 results in February that it was exploring a possible exit of the business.

The publishing group is undergoing a significant restructuring as part of efforts to focus its business on education.

The latest disposal follows a series of high-profile asset sales starting in 2015, including the sale of nearly half of its stake in publishing venture Penguin Random House for US$1bn, announced last month, and disposals of the Financial Times newspaper and The Economist magazine.

In late afternoon trading, Pearson shares were 0.4%, or 2.5p higher at 623.0p.

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