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Veritas Capital to Acquire Pearson Government Solutions
December 11 , 2006
New York (December 11, 2006) – Veritas Capital Partners,
a leading private equity firm, today announced that it has
agreed to acquire Arlington, VA-based Pearson Government
Solutions (PGS) from Pearson plc, the international media
and education company. Veritas Capital will pay $600 million
of consideration, and as part of the agreement Pearson plc
will retain a minority interest in PGS.
Veritas Capital has particular expertise investing in companies
that provide outsourcing services to government agencies.
It partners with experienced management teams to develop
leading companies in industries with attractive dynamics.
With more than 5,500 employees, PGS serves national and
local governments, education institutions and corporations
in the U.S.and around the world. The company designs, builds
and operates solutions to provide information, benefits and
services to its clients’ customers. Clients include
the U.S. Departments of Defense, Education, Health, Justice
and Labor, and the London, England Borough of Southwark. In
the last 18 months, it has renewed and extended its two largest
contracts: The Federal Student Aid contract for the U.S. Department
of Education and the Centers for Medicare & Medicaid
Services contract for the U.S Department of Health and Human
Services.
“Government Solutions has a strong management team
and an ambitious strategy for expansion, and Veritas Capital
will invest in and support those plans,” said Marjorie
Scardino, chief executive of Pearson.
“Our business has grown tremendously. And now,
as a standalone company with a strong partner like highly
regarded Veritas Capital, a committed senior management and
a talented workforce we have an enormous opportunity to create
an even more formidable position in the marketplace,” said
Mac Curtis, chief executive officer of Pearson Government
Solutions, who will hold the same role after the acquisition
by Veritas Capital.
“Our record for client retention is one of the best
in the industry. We’re known for delivering high-quality
services and solutions to government and commercial customers,
and this will continue to be our top priority,” Curtis
added.
“Pearson Government Solutions is consistent with our
strategy of acquiring strong companies that provide critical
services to government,” said Veritas Capital founder
and President Robert McKeon. “It will become
an important part of our portfolio, and we are committed
to the organization’s vision and growth plans, which
include expanding its presence geographically and in vertical,
high-potential markets, such as healthcare and business process
outsourcing. We look forward to working with its strong
management team over the long-term to execute PGS’s
growth initiatives as an independent company.”
PGS will maintain its headquarters in Arlington, Virginia. In
early 2007, the company will announce a new name.
The transaction is subject to regulatory approval and is expected
to be completed in early 2007.
About Pearson Government Solutions
Pearson Government Solutions has 5,500 employees working across the U.S. and
in the U.K., Canada, Mexico, Argentina and Venezuela. Pearson Government
Solutions is ranked #36 on Washington Technology's annual "Top 100" list
of federal prime contractors, #38 on Government Executive's list of Top
200 Government Contractors, and #14 on Government Executive's list of Top 100
Civilian Agency Contractors.
About Pearson
Pearson plc (LSE: PSON; NYSE: PSO) is an international media
company with world-leading businesses in education, business
information and consumer publishing. Pearson Education,
the world's leading education company, provides print and
digital learning materials and services to more than 100
million students of all ages every year. The Financial
Times Group has an international network of business and
financial newspapers and online services that are read
by millions of business executives and investors every
day. Penguin, one of the world’s pre-eminent names
in consumer publishing, publishes an unrivalled range of
fiction and non-fiction, bestsellers and classics, children's
books and illustrated reference titles in more than 100
countries. For more information, visit www.pearson.com.
About Veritas Capital
Veritas Capital is a private equity investment firm headquartered
in New York. Founded in 1992 by Robert B. McKeon, Veritas
invests primarily in companies specializing in outsourcing
services to the government, primarily in the areas of defense
and aerospace, security and infrastructure. Veritas' portfolio
of companies includes, or has included, DynCorp International,
Integrated Defense Technologies, Athena Innovative Solutions,
Vertex Aerospace, McNeil Technologies, The Wornick Company,
and TRAK Communications, among others. Veritas is dedicated
to providing the highest level of critical services and equipment
to the defense and federal sectors around the world. For
more information, please visit http://www.veritascapital.com.
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