Pearson (LON:PSON) , the FTSE 100 media and education group has set out the terms of a recommended cash offer for AIM-quoted education and training qualifications business Education Development (LON:EDD) . The 200p per share offer values EDI at £112.7m and represents a 61% premium to EDI’s 124p closing price last Friday. Pearson is best known as the owner of the FT newspaper in the UK but more recently has focused on growing an international education business. The EDI share price jumped by 73p to 197p during the morning, having lost 16p over the course of the last two weeks. The Pearson share price rose by 17p to leave it trading at 1,108p.

EDI is a major provider of education and training qualifications and assessment services, with a strong reputation for the use of information technology to administer learning programmes and deliver on-screen assessments. Pearson said the business would complement its existing work-based learning activities and create an enlarged qualifications group offering a comprehensive range of vocational and academic services to the UK and international markets. Pearson added that its financial resources, international scale and strengths in assessment, publishing and technology would also enhance the offering to EDI’s customers.

John Fallon, the chief executive of Pearson’s International Education Business, said: “In EDI we have found a dynamic partner who shares our commitment to education and training. In the UK and around the world, we will be even better placed to work with employers and training partners to develop high quality apprenticeships and related qualifications. In this work, we will help companies to be more competitive and make their staff more employable.”

Nigel Snook, the chief executive of EDI, said: “The offer price to acquire the EDI business reflects the value created for shareholders over the past 10 years through the hard work and commitment of the staff and management team. We now look forward to working with our Pearson colleagues to take the business on to its next stage, creating a world-class organisation supporting vocational education and training programmes in the UK and internationally.”

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