Education and publishing group Pearson has bought Utah-based IT examining business Certiport from private equity firm Spire Capital Partners, expanding its professional testing business, Pearson VUE.
Certiport, acquired for $140m in cash, develops, markets and distributes certification exams and practice tests of IT and digital literacy skills. It works through a network of 12,000 testing centres operated by 70 partners worldwide.
"Certiport's foundation-level services complement Pearson VUE's strong position in certifications and assessments for established technology professionals," the company said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The acquisition is said to support Pearson VUE's expansion into fast-growing international markets, generating more than 60% of its revenues outside North America with particular strength in Asia and the Middle East.
The company generated $48m in revenues last year and has increased revenues at a compound annual rate of more 20% over the past three years. It is expected to be earnings enhancing (on an adjusted basis) to Pearson from 2013, its first full year.
Rona Fairhead, Chief Executive of Pearson's professional education businesses, said: "Certiport is a high-quality company serving the significant demand for foundation IT skills. That need is growing fast and is truly international. The combination of Pearson VUE and Certiport will strengthen both businesses and will give us a unique portfolio of technology assessments and certification, serving everyone from a basic word-processing users to technology experts."
Pearson was trading 0.43% higher at 1,157p by 15:46 on Wednesday.
BC
-
‘I installed a heat pump in my home – here are five things I’ve learnt’From the size and noise of a heat pump to how much it costs to run one, Ruth Emery reveals what she’s learnt after installing one in her home six months ago
-
3 ways to work out if a stock is good valueThe only thing you can really control in investing is the price you pay for an asset – but how can you tell if you’re getting a good deal when it comes to the price of a stock?
