20th May 2015 12:14
LONDON (Alliance News) - Pearson PLC has lost the majority of its contract to administer state-required exams in Texas after the state's education agency on Monday said it has entered talks with a rival contractor to take over the majority of the deal.
FTSE 100-listed education and publishing company is set to lose the majority of the contract to Educational Testing Service, which is set to take over the bulk of the four-year, USD340 million student assessment mandate.
Pearson Education has handled the contract, most recently under a five-year, USD468 million deal set to expire this year, since Texas started requiring state student assessments in the 1980s.
Under the new deal, Pearson will handle developing state assessments for special needs and foreign students, worth around USD60 million, but the rest of the deal is set to be handed to ETS.
Shares in Pearson were up 0.4% to 1,345.15 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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