UK education company Pearson said today it had agreed to sell its US K12 courseware business to Nexus Capital Management for $250m as it shifts its focus from textbooks to digital.
Nexus will pay an initial $25m and a further $225m by way of a vendor note due in the next three to five years for the business.
K12 provides textbooks and resources for students from when they start primary school to when they finish.
Chief executive John Fallon said US school publishing had been an important part of Pearson for many years, and he was pleased to have found a new owner committed to its future.
"The sale frees us up to focus on the digital first strategy that will drive our future growth," he said.
Following the repayment of the vendor note, Pearson said it would be entitled to 20% of cash flows to equity holders and 20% of proceeds in the event the business was sold.