The education group will retain a 25% stake in Penguin Random House, and the deal will allow it to return £300 million to shareholders via a share buyback.
The proceeds, Pearson said, will also allow it to strengthen the balance sheet and invest in its digital transformation.
John Fallon, chief executive of Pearson, said: “Combining Penguin with Random House has proved to be a great publishing success, as well as enabling some big cost savings. This has benefited readers, authors, and shareholders.
“Today’s deal enables Pearson to realise a significant amount of the value we’ve helped to create whilst continuing to be part of the world’s biggest and best trade publisher.
“We will use the proceeds to maintain our strong balance sheet, invest in our business and return £300 million to shareholders.”
Pearson has had a difficult time of late and in February posted a dismal set of annual results, which included a £2.5 billion impairment charge, pushing the former Financial Times owner to a record £2.6 billion loss.
The firm has also issued a string of recent profit warnings.