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Justice Department Requires Divestitures in Pearson's Acquisition of Harcourt Assessment
Date:1/24/2008

ovation as a result of this transaction," said Thomas O. Barnett, Assistant Attorney General in charge of the Department's Antitrust Division. "The divestitures will ensure that customers -- including school districts, health clinics, and hospitals -- will continue to receive the benefits of competition."

Clinical tests are used by psychologists, speech-language pathologists, and clinicians, among others, to test for and diagnose individuals with disorders or disabilities, as well as to identify individuals at risk for such disorders or disabilities. Publishers, including Pearson and Harcourt, develop, edit, standardize, norm-reference, market, and sell clinical tests for a wide range of disorders and disabilities.

Under the terms of the proposed settlement, Pearson and Harcourt must divest: Harcourt's adaptive behavior clinical test, the Adaptive Behavior Assessment System; Harcourt's adult abnormal personality clinical test, the Emotional Assessment System, which is under development; and in the speech and language clinical test market, either Pearson's Comprehensive Assessment of Spoken Language and the Oral and Written Language Scales or Harcourt's Clinical Evaluation of Language Fundamentals. Under the proposed settlement, the Department's Antitrust Division must approve the buyer of each of the divested assets.

Pearson Plc, headquartered in London, operates businesses in educational publishing, business information and consumer publishing. Pearson Education Inc., a wholly-owned subsidiary of Pearson Plc headquartered in Upper Saddle River, N.J. develops and sells clinical tests throughout the United States.

Reed Elsevier Plc and Reed Elsevier NV jointly own Harcourt Assessment Inc. Reed Elsevier Plc is headquartered in London and Reed Elsevier NV is headquartered in Amsterdam, Netherlands. Harcourt, headquartered in San Antonio, Texas, develops and sells clinical tests throughout the United States.

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SOURCE U.S. Department of Justice
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