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Agreements to dispose of Hobsons

·3-min read

Daily Mail and General Trust plc (DMGT)
19-Feb-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

18 February 2021

 

Daily Mail and General Trust plc (DMGT)

Agreements to dispose of Hobsons

 

DMGT announces that today it has agreed the sale of Hobsons, its EdTech business, in two separate transactions, for total proceeds of approximately US$410m.

Hobsons' Naviance and Intersect businesses are being sold to US-based PowerSchool, a leading provider of K-12 education technology solutions, for approximately US$320m, and are expected to be part of PowerSchool's unified platform.  The timing of completion is subject to the customary closing conditions.

Hobsons' Starfish business, after an internal restructuring where it will be spun-out from the rest of Hobsons, is being sold to EAB, a US-based education company, for approximately US$90m. Together, Starfish and EAB are expected to enhance their complementary student success capabilities in order to strengthen their support of students.  The timing of completion is subject to the customary closing conditions.

Paul Zwillenberg, DMGT CEO, commented: "These two transactions mark another major milestone in DMGT's transformation and are a clear demonstration of the benefits of our strategy.  Hobsons was restructured in 2017 to focus on high-growth opportunities in Student Success.  The combination of operational execution and organic investment drove a significant increase in capital value.

Consistent with our strategy, the divestitures will increase the focus of the DMGT portfolio, resulting in the Group operating in four sectors, compared to ten in 2016.  The proceeds will strengthen DMGT's existing net cash position, further enhancing DMGT's significant financial flexibility."

Naviance is a K-12 college and career readiness solution and Intersect is a higher education student match and fit business. 

Starfish is a higher education student retention and success platform. 

In FY 2020, Hobsons generated £6m adjusted operating profit from revenues of £85m.

Centerview Partners is acting as exclusive financial adviser and Baker McKenzie as exclusive legal adviser to DMGT during the disposal process.

 

Enquiries

Investors:

 

Tim Collier, Group CFO

+44 20 3615 2902

Adam Webster, Head of Investor Relations

+44 20 3615 2903

 

 

Media:

Doug Campbell, Teneo

 

+44 7753 136628

Paul Durman, Teneo

+44 7793 522824

 

Market Abuse Regulation

The information communicated in this announcement includes inside information.

 

About DMGT

DMGT manages a portfolio of companies that provide businesses and consumers with compelling information, analysis, insight, events, news and entertainment.  The Group takes a long-term approach to investment and has market-leading positions in consumer media, insurance risk, property information, education technology and events & exhibitions.  In total, DMGT generates revenues of around £1.2bn.

 

Person responsible for arranging the release of this announcement:

Fran Sallas, Company Secretary

+44 20 3615 2904

 


ISIN:

GB00BJQZC279

Category Code:

DIS

TIDM:

DMGT

LEI Code:

4OFD47D73QFJ1T1MOF29

OAM Categories:

2.2. Inside information

Sequence No.:

93890

EQS News ID:

1169582


 

End of Announcement

EQS News Service

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