Daily Mail And General Trust (DMGT), the company best known as the parent of Britain’s Daily Mail newspaper, has announced the sale of its EdTech business Hobsons in two separate transactions worth a combined $410 million.
Hobsons’ Naviance and Intersect businesses will be sold to the U.S. based company PowerSchool for $320 million. Naviance provides college and career readiness services while Intersect helps college target students who will be a good fit for their institutions.
On the other hand, its Starfish business is being sold to EAB, another EdTech company, for $90 million. Starfish helps colleges and universities increase the retention rate and graduation rate of students, claiming to double the retention rate when compared to non-Starfish using peers.
With the sale, DMGT will significantly enhance its liquidity and gain greater focus. It will have narrowed its operating segments down to four from ten, just 5 years earlier. It should increase both strategic and financial flexibility.