FT publisher Pearson to sell FTSE stake for £450m

Financial Times publisher Pearson has announced that it is to sell its 50% stake in FTSE International to the London Stock Exchange Group in a deal worth £450m.

The London Stock Exchange will continue to use the FTSE name, with the £450m deal expected to be completed by the first quarter of 2012.

The sale is part of the publisher’s exit from providers of financial data and “strengthens the FT Group’s focus on global business news, analysis and intelligence”.

Marjorie Scardino, chief executive of Pearson, says: “FTSE is a bellwether of global financial markets and a world-class business.

“We have enjoyed supporting the company’s excellent and highly professional team to build the business.”

“Proud as we are of that long association, FTSE’s strategy is different from our own.”

She adds: “For Pearson, the transaction further strengthens our financial position at a time of significant macroeconomic turbulence.

“We are freeing up capital for continued investment in a proven strategy: becoming more digital, more international and more service-oriented in education, business information and consumer publishing.”

FTSE manages more than 200,000 equity, bond and alternative asset class indices around the world, including the FTSE 100 index.

Pearson and the London Stock Exchange Group both owned a 50% stake in the FTSE International.

According to Pearson, during 2010 FTSE International reported total revenues of £98.5m and total earnings before interest, tax, depreciation and ammortisation of £40m.

The publisher expects FTSE to make a total post-tax contribution to Pearson’s adjusted earnings of approximately £18m in 2011.

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