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330 Hudson Street, FL 4, Ne Visit www.mergermarket.c McGraw-Hill Education interested in By Marlene Givant Star November 20, 2014 Still pointing to 2015 IPO, sourc Continues to reduce dependen McGraw-Hill Education (MHE) is inter Price, VP-M&A. “That, to me, is what we’re after,” she s looking for more acquisitions in that are graduation rates remain too low, Price s In the past 12 months, the New York-ba businesses: Aleks, an adaptive learning Area9, based in Denmark. In January 2013, MHE purchased a 20% remaining 80%. MHE has partnered wit platform is focused mainly on higher ed The adaptive approach pinpoints what s their goals. Overall, adaptive learning b Apollo acquired MHE from McGraw-Hil at 7.3x 2012 EBITDA of USD 327m. In pitches from investment banks on the m offering. MHE’s EBITDA exceeds USD timing of a potential IPO. Mary Jo Zandy, managing director of in sometime in 2015. “It’s not a secret tha market looks good for education compa emphasize growth and educational tech education, she noted. Zandy thinks an MHE listing would have and their stock market performance “ha Pearson [NYSE:PSO] has had some e [NASDAQ: HMHC] is “a work in progres The third comparable is John Wiley [N an enterprise value of about 9x TTM EB choose from in the education sector as MHE is still primarily print oriented but i ew York, NY 10013 USA tel: +1 212-686-5606 www.mergerm com further adaptive learning buys, exec ce says nce on print rested in further acquisitions in the adaptive learning said on the sidelines of a recent ACG education even ea. There’s a whole world out there,” seeking better l said. ased company, owned by Apollo Global, acquired tw g platform for math aimed at K-12 and higher educat % equity stake in Area9 and in February of this year, th Area9 on adaptive learning technology since 2007 ducation. Terms of the two acquisitions were not disc students know and their areas of difficulty in order to better serves students than just a flat textbook approa ll Companies in March 2013 for USD 2.4bn in cash July, this news service reported that MHE, through A merits of taking the company public, suggesting the p 400m, the report said. A company spokesperson de nvestment bank Berkery Noyes, said MHE is waiting at that’s their goal,” Zandy said. “The ingredients are anies,” she said. The company is doing well and repo hnology. K-12 is rebounding and the company is also e a “pretty substantial” float. As far as comparables, as not been stellar.” earnings warnings on its K-12 business. Houghton M ss” but is sitting on substantial cash. NYSE: JW]. They all trade in the range of 2x revenue BITDA. On the other hand, there are very few big pu sizable as MHE, so an IPO is likely to attract investo is diversifying into digital and becoming more of a hig market.com 1 arena, said Dana nt in New York. “We’re learning outcomes as wo adaptive learning tion students and , it bought the 7. Area9’s LearnSmart closed. o help them reach ach, Price said. , valuing the business Apollo, was receiving possibility of a 2015 eclined to comment on to go public there. The stock ositioning itself to o strong in higher there are not many Mifflin Harcourt over the long haul or ublic companies to or interest. Zandy said gher education play.

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330 Hudson Street, FL 4, New York, NY

Visit www.mergermarket.com

McGraw-Hill Education interested in further adaptive learning buys, execBy Marlene Givant Star November 20, 2014

• Still pointing to 2015 IPO, source says• Continues to reduce dependence on print

McGraw-Hill Education (MHE) is interested in further acquisitions in the adaptive learning arena, said Dana Price, VP-M&A.

“That, to me, is what we’re after,” she said on the sidelines of a recent ACG education event in looking for more acquisitions in that area. There’s a whole world out there,” seeking better learning outcomes as graduation rates remain too low, Price said.

In the past 12 months, the New York-based company, owned by Apollo Global, acquibusinesses: Aleks, an adaptive learning platform for math aimed at KArea9, based in Denmark.

In January 2013, MHE purchased a 20% equity stake in Area9 and in February of this year, it bought remaining 80%. MHE has partnered with Area9 on adaptive learning technology since 2007. Area9’s LearnSmart platform is focused mainly on higher education. Terms of the two acquisitions were not disclosed.

The adaptive approach pinpoints what students ktheir goals. Overall, adaptive learning better serves students than just a flat textbook approach, Price said.

Apollo acquired MHE from McGraw-Hill Companiesat 7.3x 2012 EBITDA of USD 327m. In July, this news service reported that MHE, through Apollo, was receiving pitches from investment banks on the merits of taking the company public, suggesting the possibility of a 2015 offering. MHE’s EBITDA exceeds USD 400m, the report said. A company spokesperson declined to comment on timing of a potential IPO.

Mary Jo Zandy, managing director of investment bank Berkery Noyes, said MHE is waiting to go public sometime in 2015. “It’s not a secret that that’s their goal,” Zandy said. “The ingredients are there. The stock market looks good for education companies,” she said. The company is doing well and repositioning itself to emphasize growth and educational technology. Keducation, she noted.

Zandy thinks an MHE listing would have a “pretty substantial” float. As far as comparables, there are not many and their stock market performance “has not been stellar.”

Pearson [NYSE:PSO] has had some e[NASDAQ: HMHC] is “a work in progress” but is sitting on substantial cash.

The third comparable is John Wiley [NYSE: JW]. They all trade in the range of 2x revenue over the long haul or an enterprise value of about 9x TTM EBITDA. On the other hand, there are very few big public companies to choose from in the education sector as sizable as MHE, so an IPO is likely to attract investor interest. Zandy said MHE is still primarily print oriented but is diversifying into digital and becoming more of a higher education play.

, New York, NY 10013 USA tel: +1 212-686-5606 www.mergermarket.com

Visit www.mergermarket.com

Hill Education interested in further adaptive learning buys, exec

Still pointing to 2015 IPO, source says Continues to reduce dependence on print

(MHE) is interested in further acquisitions in the adaptive learning arena, said Dana

“That, to me, is what we’re after,” she said on the sidelines of a recent ACG education event in looking for more acquisitions in that area. There’s a whole world out there,” seeking better learning outcomes as graduation rates remain too low, Price said.

based company, owned by Apollo Global, acquired two adaptive learning businesses: Aleks, an adaptive learning platform for math aimed at K-12 and higher education students and

In January 2013, MHE purchased a 20% equity stake in Area9 and in February of this year, it bought remaining 80%. MHE has partnered with Area9 on adaptive learning technology since 2007. Area9’s LearnSmart platform is focused mainly on higher education. Terms of the two acquisitions were not disclosed.

The adaptive approach pinpoints what students know and their areas of difficulty in order to help them reach their goals. Overall, adaptive learning better serves students than just a flat textbook approach, Price said.

Hill Companies in March 2013 for USD 2.4bn in cashat 7.3x 2012 EBITDA of USD 327m. In July, this news service reported that MHE, through Apollo, was receiving pitches from investment banks on the merits of taking the company public, suggesting the possibility of a 2015

’s EBITDA exceeds USD 400m, the report said. A company spokesperson declined to comment on

Mary Jo Zandy, managing director of investment bank Berkery Noyes, said MHE is waiting to go public hat that’s their goal,” Zandy said. “The ingredients are there. The stock

market looks good for education companies,” she said. The company is doing well and repositioning itself to emphasize growth and educational technology. K-12 is rebounding and the company is also strong in higher

Zandy thinks an MHE listing would have a “pretty substantial” float. As far as comparables, there are not many and their stock market performance “has not been stellar.”

[NYSE:PSO] has had some earnings warnings on its K-12 business. Houghton Mifflin Harcourt[NASDAQ: HMHC] is “a work in progress” but is sitting on substantial cash.

[NYSE: JW]. They all trade in the range of 2x revenue over the long haul or terprise value of about 9x TTM EBITDA. On the other hand, there are very few big public companies to

choose from in the education sector as sizable as MHE, so an IPO is likely to attract investor interest. Zandy said ut is diversifying into digital and becoming more of a higher education play.

www.mergermarket.com

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(MHE) is interested in further acquisitions in the adaptive learning arena, said Dana

“That, to me, is what we’re after,” she said on the sidelines of a recent ACG education event in New York. “We’re looking for more acquisitions in that area. There’s a whole world out there,” seeking better learning outcomes as

red two adaptive learning 12 and higher education students and

In January 2013, MHE purchased a 20% equity stake in Area9 and in February of this year, it bought the remaining 80%. MHE has partnered with Area9 on adaptive learning technology since 2007. Area9’s LearnSmart platform is focused mainly on higher education. Terms of the two acquisitions were not disclosed.

now and their areas of difficulty in order to help them reach their goals. Overall, adaptive learning better serves students than just a flat textbook approach, Price said.

, valuing the business at 7.3x 2012 EBITDA of USD 327m. In July, this news service reported that MHE, through Apollo, was receiving pitches from investment banks on the merits of taking the company public, suggesting the possibility of a 2015

’s EBITDA exceeds USD 400m, the report said. A company spokesperson declined to comment on

Mary Jo Zandy, managing director of investment bank Berkery Noyes, said MHE is waiting to go public hat that’s their goal,” Zandy said. “The ingredients are there. The stock

market looks good for education companies,” she said. The company is doing well and repositioning itself to mpany is also strong in higher

Zandy thinks an MHE listing would have a “pretty substantial” float. As far as comparables, there are not many

Houghton Mifflin Harcourt

[NYSE: JW]. They all trade in the range of 2x revenue over the long haul or terprise value of about 9x TTM EBITDA. On the other hand, there are very few big public companies to

choose from in the education sector as sizable as MHE, so an IPO is likely to attract investor interest. Zandy said ut is diversifying into digital and becoming more of a higher education play.