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Pearson acquires Harcourt's UK arm

05.05.07

Pearson has acquired  Harcourt Education International and Harcourt Assessment from Reed Elsevier for $950m (£477m) in cash. The deal does not include Harcourt's larger US schools and supplementary publishing businesses.

Harcourt Education, headquartered in Oxford, publishes textbooks and online learning materials in the UK, South Africa, Botswana, Australia and New Zealand under imprints which include Heinemann, Rigby, Ginn, Payne Gallway and Raintree. Harcourt Assessment is the division's US-based educational testing arm.

Marjorie Scardino, Pearson c.e.o., said: "We have long admired these businesses. They bring new intellectual property, capabilities and  skills to Pearson, and will enable us to accelerate our strategy of leading the personalisation of learning, both in the US and around the world. We know that their people share our commitment to  education, and we look forward to welcoming them as colleagues."

The transaction will close in several stages, following regulatory review by the relevant authorities. In 2006, Harcourt Assessment and Harcourt Education International contributed $524m (£263m) in revenue and $31m (£16m) of operating profit to Reed Elsevier before restructuring charges and one-off costs relating to the US testing business.

Reed Elsevier said it planned to sell Harcourt Education in February. The group said the sale of the remainder, its US schools and supplemental publishing businesses, was proceeding satisfactorily and was expected to complete in the second half of 2007. These remaining businesses reported in 2006 revenues of $1,113m and operating profit before the amortisation of acquired intangible assets of $228m.

US pearson education Harcourt

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