Pearson Gets 'Good Deal' for The Economist Magazine

The sale of Pearson's stake in The Economist is the latest step in the firm's strategy to focus the business on education publishing. It follows last month's sale of the Financial Times

Philip Gorham 12 August, 2015 | 2:27PM

Pearson's (PSON) restructuring continued today with the sale of the firm's 50% stake in The Economist to EXOR S.p. A. for £469 million in cash. We regard the deal as being good value for Pearson, and we expect the proceeds to be put towards acquisitions in the education publishing industry.

Pearson now has an acquisition pot of around £1.8bn

We are reiterating our £13 fair value estimate for the ordinary shares, and this deal does not impact our narrow moat rating.

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