NEW YORK, June 20, 2013 /PRNewswire/ -- McGraw-Hill, a leading digital learning company, today announced that it has signed an agreement to acquire ALEKS Corporation, the privately held developer of the ALEKS® adaptive learning technology for the K-12 and higher education markets. The move strengthens McGraw-Hill's position as the leader in delivering personalized learning experiences through adaptive technology. The acquisition is McGraw-Hill's first since it was acquired by funds affiliated with Apollo Global Management, LLC (NYSE: APO) in March 2013. Terms of the agreement were not disclosed. The closing of the transaction is expected to occur early in the third quarter of 2013.
ALEKS uses research-based, artificial intelligence to rapidly and precisely determine each student's knowledge state, pinpointing exactly what a student knows and doesn't know. ALEKS then instructs students on the topics they're most ready to learn, constantly updating each student's knowledge state and adapting to the student's individualized learning needs. McGraw-Hill has marketed and sold ALEKS for math in the higher education space for more than 10 years.
McGraw-Hill's acquisition of ALEKS Corporation marks the company's latest initiative to bolster its offerings and capabilities in adaptive learning, an effective and increasingly popular method of education that uses technology to help educators provide personalized learning experiences. In January 2013, McGraw-Hill acquired an equity stake in Area9 Aps, the Denmark-based adaptive learning company. McGraw-Hill and Area9 have worked together to develop products such as the LearnSmart Advantage adaptive learning suite, which includes SmartBook, the world's first-ever adaptive e-book.
"At McGraw-Hill, our number one focus is providing solutions that generate improved results for students, educators, and institutions, and we believe that delivering personalized experiences through adaptive technology is a key ingredient to teaching and learning success," said Buzz Waterhouse, president and chief executive officer of McGraw-Hill. "Through our acquisition of ALEKS, we're working to grow and further develop the type of engaging, personalized experiences that we see as a central element in the future of education."
"ALEKS Corporation and McGraw-Hill share a vision for transforming education through the most advanced technology and the highest quality content on the market," said Wil Lampros, chief executive officer of ALEKS Corporation. "Becoming part of McGraw-Hill will enable us to help many more students with additional resources and accelerated momentum. We're delighted to join forces with our long-term partner at this critical time for education."
McGraw-Hill will continue to sell ALEKS as a standalone solution over the near term, but the company plans deeper integration between ALEKS and its content and digital platforms. As part of the acquisition, McGraw-Hill will maintain ALEKS Corporation's current offices in Irvine, Calif.
East Wind Advisors acted as exclusive financial advisor to ALEKS Corporation in this transaction.