UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2006
PEARSON plc
(Exact name of registrant as specified in its charter)
N/A
(Translation of registrant's name into English)
80 Strand
London, England WC2R 0RL
44-20-7010-2000
(Address of principal executive office)
Indicate by check mark whether the Registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F
Indicate by check mark whether the Registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
Yes No X
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This Report includes the following documents:
1. A press release from Pearson plc announcing Acquisition
8 August 2006
PEARSON ACQUIRES MERGERMARKET:
ADDS NEW FINANCIAL CONTENT AND SERVICES TO THE FT GROUP
Pearson, the international education and information company, today announced
the acquisition of the Mergermarket Group for GBP101m (net of cash retained in
the business).
Mergermarket is a highly customer-focused financial information company which
combines historical news and data with proprietary, forward-looking insights and
intelligence. It provides this information electronically to financial
institutions, corporations and their advisers, becoming part of their customers'
daily workflow.
Its flagship product, mergermarket, couples detailed databases of transactions
and third party news sources with early-stage intelligence on potential
corporate activity generated by 160 M&A journalists in 31 countries. Its
customers - which include 29 of the world's top 30 investment banks, 18 of the
top 20 law firms and 25 of the top 30 private equity houses - use this
information to generate ideas and new business opportunities.
Building on the successful mergermarket model, the company has launched a series
of new services including Debtwire for traders of distressed and high-yield
debt, dealReporter for merger arbitrageurs and Wealthmonitor for private
bankers. It has a strong record of successful product launches and a healthy
pipeline of further innovative new services to be launched over the next few
years.
Founded in 2000, mergermarket's sales have grown very rapidly and its
subscription model produces high renewal rates (currently well over 95%),
reliable revenue streams and excellent cash conversion. The acquisition is
expected to enhance Pearson's adjusted earnings per share in 2007, its first
full year and return on invested in capital in 2008.
"Mergermarket builds its products around its customers, creating unique,
indispensable content that becomes part of their daily lives. It has grown
rapidly, demonstrating its ability to build new services around a highly
successful business model, and it has an excellent team of people who we are
delighted to welcome on board," said Rona Fairhead, chief executive of the
Financial Times Group.
"For the FT Group, it adds proprietary content, a premium customer base,
reliable growth from new revenue sources and attractive financial
characteristics. We see opportunities to connect mergermarket and the FT Group,
from the Financial Times and FT.com to our specialist financial magazines and
Interactive Data Corporation. These would include using existing FT Group
information to develop new products, developing advertising and sponsorship
revenues and sharing technology capabilities."
Mergermarket will continue to be led by its current management team including
Caspar Hobbs, CEO; Charlie Welsh, Editor-in-Chief; Gawn Rowan Hamilton, CFO; and
Richard Hall, managing director for dealReporter and Debtwire.
Caspar Hobbs, CEO of mergermarket, said: "The employees of mergermarket have
worked passionately and tirelessly over the last seven years to create a truly
global business. Their commitment has been extraordinary and, as a result, so
has our success. We have ambitious plans to build our business even further and
I can think of no better partner for us than the FT Group."
Ends
For more information:
Pearson
Luke Swanson / Simon Mays-Smith
+44 (0)20 7010 2310
FT Group
Joanna Manning-Cooper
+44 (0)20 7873 4447
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PEARSON plc
Date: 8 August, 2006
By: /s/ STEPHEN JONES
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Stephen Jones
Deputy Secretary