UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of December 2006
PEARSON plc
(Exact name of registrant as specified in its charter)
N/A
(Translation of registrant's name into English)
80 Strand
London, England WC2R 0RL
44-20-7010-2000
(Address of principal executive office)
Indicate by check mark whether the Registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F
Indicate by check mark whether the Registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
Yes No X
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This Report includes the following documents:
1. A press release from Pearson plc announcing Disposal
11 December 2006
Pearson to sell Government Solutions to Veritas Capital
Pearson, the international media and education company, today announces that it
has agreed to sell Pearson Government Solutions, its government services
business, to Veritas Capital. The purchase price consists of $560m in cash, $40m
in preferred stock and 10% of the equity of the business.
The transaction is subject to regulatory approval and other closing conditions
and is expected to be completed in the first quarter of 2007.
In 2005, Government Solutions contributed $46m of operating profit to Pearson.
At the end of June 2006, it had gross assets including goodwill of $573m.
Pearson expects to realise net cash proceeds of approximately $560m on the sale.
It intends to use the proceeds to invest in its businesses, both organically and
through bolt-on acquisitions, and to reduce its overall indebtedness.
"Government Solutions has achieved exceptional growth as part of Pearson. It has
a strong management team and an ambitious strategy for expansion, and Veritas
will invest in and support those plans," said Marjorie Scardino, chief executive
of Pearson.
"Pearson's focus is on building our leadership positions in education and
information through strong organic growth and selected new business investments.
This transaction is consistent with that strategy."
With more than 5,500 employees, Government Solutions serves national and local
governments, education institutions and corporations in the US and around the
world. The company designs, builds and operates solutions to provide
information, benefits and services to its clients' customers. Clients include
the U.S. Departments of Education, Health and Human Services, Defense, Justice
and Labor and the London Borough of Southwark. In the past 18 months, it has
renewed and extended its two largest contracts: the Federal Student Aid contract
for the US Department of Education and the Centers for Medicare & Medicaid
Services contract for the US Department of Health.
Government Solutions became part of Pearson in 2000 when Pearson acquired
educational testing and technology company National Computer Systems Inc (NCS).
Since that time Government Solutions has grown rapidly, more than tripling sales
over the past six years.
Veritas Capital is a leading New York-based private equity firm with particular
expertise in the government services, media, defence, aerospace and consumer
products industries. It partners with experienced management teams to develop
leading companies in industries with attractive dynamics.
Ends
For more information:
Luke Swanson/ Simon Mays-Smith/ Deborah Lincoln + 44 (0) 207 010 2310
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PEARSON plc
Date: 11 December 2006
By: /s/ STEPHEN JONES
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Stephen Jones
Deputy Secretary