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Financial Times publisher Pearson today snapped up London-based vocational training company Melorio for £99.3 million at a 31% premium to the share price.
Melorio chairman Hugh Aldous said the board unanimously recommended Pearson's 225p-a-share cash deal, although he admitted: “The offer has come at an early stage in Melorio's development.
Pearson has approached us, we didn't approach them.”
City broker WH Ireland suggested that Pearson's offer “substantially undervalues the company”.
But Aldous said: “Institutions think it's an acceptable offer. The call in these cases is with shareholders.”
Melorio's biggest shareholder is investment house Marwyn Neptune Fund, which owns 23% and floated Melorio on AIM in 2007.
Schroder Investment Managment and Legal & General each hold about 10%.
Other investors include board director George Anderson, who founded Melorio subsidiary company Zenos and has 8%.
Private shareholders Geoffrey Lennox and Richard Fielding each hold around 4.5%.
Pearson's acquisition is part of its strategy of investing in its growing education business which generates more than 60% of revenues.
