NEW YORK (CNNfn) - Educational software publisher The Learning Co. Inc. agreed Friday to buy Mindscape Inc. from British media group Pearson PLC for $150 million in cash and stock.
Mindscape publishes such educational, productivity and entertainment software as Mavis Beacon Teaches Typing, The Complete National Geographic Collection, Chessmaster 5500 and The Princeton Review: Inside the SAT & ACT.
Mindscape had revenue of approximately $130 million in the year ended Dec. 31, 1997.
"We are very impressed with the achievements and the sales momentum that Mindscape has been able to achieve over the past twelve months," said Michael Perik, Learning Co. chairman and chief executive officer.
"We believe the company has built one of the best portfolios of branded content available in the marketplace today. In addition, we expect that this acquisition will be accretive to fiscal 1998 earnings by at least 5 cents per share for The Learning Co.''
Shares of The Learning Co. (TLC) rose 1-3/4 to 19-1/16 in early trading.
Pearson, whose holdings include The Financial Times newspaper and the television program "Baywatch," will take a $346 million loss on the sale of Mindscape.
"We are selling Mindscape because we believe it is always going to be worth more to a company such as The Learning Co. than it would be to Pearson," said Marjorie Scardino, Pearson CEO. "Its disposal enables us to concentrate more of our resources on the media business."