FT : Thomson Learning Goes Private

Saturday, May 12, 2007

Thomson Corp on Friday agreed to sell its education publishing division for $7.75bn in cash, boosting the ability of the Canadian electronic publishing group to finance a bid for British rival Reuters.  As part of the offer made for Reuters on May 7, Thomson Corp would need about $8.75bn in cash, and the higher-than-expected selling price of its education division would help fund that, analysts and executives said…..Apax Partners, the British private equity group, and the Ontario Municipal Employees Retirement System were the winning bidders for Thomson’s educational publishing division, which it put on the block last October after deciding it wanted to focus on electronic news and information.  The sale of the group, which includes textbooks and testing divisions, attracted “great interest” from bidders, according to a Thomson executive.  The steady cash flows of assets such as education publishing make this sector particularly attractive to private equity.  The sale price, which exceeded the $6bn many analysts had expected, also led to an increase in the share price of other companies in the US education sector, such as Reed Elsevier and Pearson, the owner of the Financial Times…..

Reference : http://www.ft.com/cms/s/f7e0411e-ffc2-11db-8c98-000b5df10621.html

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