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Daily Mail owner sells its EdTech business Hobsons for about $410 million

·1 min read

Feb 18 (Reuters) - The owner of Britain's Daily Mailnewspaper said on Thursday that it has agreed to sell its EdTechbusiness, Hobsons, in two separate transactions, for a total ofabout $410 million.

Daily Mail and General Trust said that itsHobsons' Naviance and Intersect businesses are being sold toU.S.-based PowerSchool, a K-12 education technology solutionscompany, for about $320 million.

Hobsons' Starfish business, after an internal restructuringwhere it will be spun-out from the rest of Hobsons, is beingsold to EAB, a U.S.-based education company, for about $90million, the company said in a statement.

"Consistent with our strategy, the divestitures willincrease the focus of the DMGT portfolio, resulting in the Groupoperating in four sectors, compared to ten in 2016," Daily Mailand General Trust Chief Executive Officer Paul Zwillenberg said.

"The proceeds will strengthen DMGT's existing net cashposition, further enhancing DMGT's significant financialflexibility," he added.

In the 2020 financial year, Hobsons generated 6 millionpounds ($8.38 million) adjusted operating profit from revenuesof 85 million pounds.

Centerview Partners is acting as exclusive financial adviserfor the deal, the company said.

In January, the publisher of the Daily Mail said that grouprevenue fell 15% in the three months to the end of December,dragged down by falls in print advertising revenues at itspapers and by cancellations in its events business.($1 = 0.7160 pounds)(Reporting by Nandakumar D in Bengaluru; Editing by NickMacfie)