Data overload

4 May 2010 By Alexander Smith

The UK media group has got a fair $2 bln for the sale of its 61 pct stake in Interactive Data Corp to private equity. The deal suggests that leverage is back helping buyout firms outgun trade bidders. But a slimmer Pearson now faces questions about its strategic priorities.

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UK publishing group Pearson has agreed to sell its 61 percent stake in Interactive Data Corporation for $2 billion to private equity firms Silver Lake and Warburg Pincus.

The $33.86 per share cash offer values IDC at $3.4 billion and is being funded with equity and an undisclosed amount of debt.

The deal follows an auction including other private equity firms and strategic buyers. The price represents a premium of around 33 percent over the Jan. 14 closing price, the last trading day before IDC said it was reviewing strategic alternatives.

Pearson said it would use the proceeds "to accelerate the expansion of its businesses, including through bolton acquisitions, with a particular focus on adding complementary technology and services to its international, consumer and professional education businesses."

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