By Alex Mutter
McGraw-Hill has signed an agreement to sell its Education business to investment firm Apollo Global Management for $2.5 billion dollars, the company confirmed yesterday.
“After carefully considering all of the options for creating shareholder value, the McGraw-Hill Board of Directors concluded that this agreement generates the best value and certainty for our shareholders and will most favorably position the world-class assets of McGraw-Hill Education for long term success,” said Harold McGraw III, President and CEO of McGraw-Hill, in a press release.
The deal is expected to close either late this year or early in 2013, and will see McGraw-Hill’s name changed to McGraw-Hill Financial; the company will focus on content and analytics in the global capital and commodities market.
“We look forward to leveraging the company’s leading portfolio of trusted brands and innovative digital learning solutions to drive growth through the ongoing convergence of education and technology on a global basis,” said Larry Berg, Senior Partner of Apollo.
Lloyd G. Waterhouse, President and CEO of McGraw-Hill Education, stated: “We are excited about this announcement and what it means for McGraw-Hill Education…McGraw-Hill Education’s expertise and premier brands coupled with Apollo’s resources represent a powerful combination.”