McGraw Hill currently earns revenue of $1bn a year from digital products
McGraw Hill distributes its products in over 100 countries. (Credit: Platinum Equity)
Global investment firm Platinum Equity has signed an agreement with Apollo Funds to acquire educational content and digital platforms provider McGraw Hill for nearly $4.5bn.
The New York City-headquartered McGraw Hill offers learning solutions to millions of students globally. Available in more than 80 languages, the company’s learning solutions are designed for pre-kindergarten –12, higher education, professionals and others.
McGraw Hill, which was founded in 1888, distributes its products in over 100 countries across the Americas, Asia-Pacific, Europe, India and the Middle East.
The company provides both curated content and digital learning tools and platforms to the classrooms of approximately 250,000 higher education instructors, and 13,000 pre-kindergarten through 12th-grade school districts.
Its learning tools and platforms are also used by various academic institutions, professionals and companies.
Currently, the company earns revenue of $1bn a year from digital products.
Platinum Equity founder and CEO Tom Gores said: “We believe in McGraw Hill’s mission to create a brighter future for learners of all ages around the world.
“The pandemic has been especially disruptive to education, and investing in innovative solutions, and digital learning tools in particular, is more important than ever. We are excited about the opportunity to put our operational and financial resources to work on behalf of students and teachers everywhere.”
McGraw Hill has also acquired six digitally-focused companies since 2013, as part of its efforts to transform the business to boost digital growth.
The company claims to have also grown digital as a percentage of revenue from less than 25% in 2013 to more than 60% currently and over 80% in its higher education business.
Under Platinum’s ownership, the business will continue to be led by McGraw Hill CEO Simon Allen and his senior leadership team.
The transaction is expected to be closed this summer, subject to customary closing conditions and regulatory approval.
Gibson, Dunn & Crutcher is acting as legal advisor to Platinum Equity on the transaction, while Willkie Farr is serving as its financial advisor.
In May, RBmedia, a major audiobook producer in the world, acquired McGraw Hill Professional’s audiobook publishing business that includes a catalogue of previously published titles.
The company has also signed an exclusive, long-term agreement to publish McGraw Hill Professional’s new titles.