Pearson target EDI sees revenues lift

COVENTRY based education specialist EDI – whose acquisition by Pearson was finally cleared by the OFT this month after months of wrangling – has announced a 4.7% increase in revenue for th six months to March.

Education Development International is a leading provider of accredited qualifications and assessment services, and it’s deal with Person creates a major force in education provision in the UK.

Today it reported unaudited intermim results showing a turnover of £14.07m (2010: £13.44m). 

Operating profit for the period was £4.29m (2010: £3.89m). Adjusted operating profit for the period increased by 4.7% to £4.47m (2010: £4.27m).  This comprises profit on ordinary activities before taxation adjusted for the amortisation charge on acquired intangible assets and costs associated with the acquisition of EDI by Pearson.

The two companies announced on March 7 that an agreement had been struck which would see Pearson take over the education specialist in the multi-million pound deal.

Pearson has said the acquisition will complement its existing work-based learning business and will create an enlarged qualifications group offering a comprehensive range of vocational and academic services in the UK and abroad.

Pearson said it was pleased by the ruling and was now satisfied that all of the conditions to the offer had been met. It has declared the offer unconditional in all respects and it will remain open for acceptance until further notice.  

Two weeks ago, Pearson said it had received acceptances from 86.25% of the EDI shareholders.

Remaining EDI shareholders who have not accepted the offer have been urged to respond as soon as possible.

The offer price represents a premium of 61% above EDI’s closing price on March 4. EDI has already recommended its shareholders to accept the offer.

Pearson said EDI shareholders who had accepted the offer were likely to receive their payments sometime during the next fortnight.

The company will now apply to the London Stock Exchange for the cancellation of EDI’s admission to the Alternative Investment Market.

The cancellation is expected to take effect on July 8.

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