EDI, the qualification accreditation and educational assessment company, has received an offer from Pearson Plc, the education, business and consumer publishing giant.
The acquisition, at 200p per share, values EDI at £112.7 million (a 61% premium to the share price on Friday March 4th). Pearson announced that the acquisition will enable the creation of an enlarged qualifications group (Pearson owns Edexcel, one of EDI’s principal competitors in the UK market).
The Pearson board has received undertakings from shareholders representing c. 30% of EDI’s shares in issue to accept the offer – including institutional investors JO Hambro and Hargreave Hale.
I would be interested to see comments from holders on prospects for this bid. It will put a tiny growth company, into the very slow moving Pearson. Clearly a great deal for Pearson, with their grip on the US market in educational testing. What prospect for an independent future, or even a higher bid for EDD?
fourayes on 5th April 11
