Cengage Bidding for McGraw-Hill Education

Cengage Learning — which owns NetLearning — is among the companies that have put in initial bids for McGraw-Hill Companies’ education business. Other interested parties include Bain Capital, Thomas H. Lee Partners and Apollo Global Management.

McGraw-Hill Ed could be valued (by sales) at around $3 billion.

In a conference call with analysts last week, McGraw-Hill chief financial officer Jack Callahan said that the company was evaluating other options to a spin-off of the textbook business, including a potential sale.

Cengage is also reportedly considering a bid for the online education services company EmbanetCompass. In a credit note last month, Standard & Poor described Cengage’s financial risk profile as “highly leveraged” and said the company had “less than adequate” sources of liquidity to more than cover its needs over the next 12 to 18 months, with sources suggesting this might drive Cengage to consider acquisitions to boost cash flow.

—Source: Reuters

Cengage Learning — which owns NetLearning — is among the companies that have put in initial bids for McGraw-Hill Companies’ education business. Other interested parties include Bain Capital, Thomas H. Lee Partners and Apollo Global Management.

McGraw-Hill Ed could be valued (by sales) at around $3 billion.

In a conference call with analysts last week, McGraw-Hill chief financial officer Jack Callahan said that the company was evaluating other options to a spin-off of the textbook business, including a potential sale.

Cengage is also reportedly considering a bid for the online education services company EmbanetCompass. In a credit note last month, Standard & Poor described Cengage’s financial risk profile as “highly leveraged” and said the company had “less than adequate” sources of liquidity to more than cover its needs over the next 12 to 18 months, with sources suggesting this might drive Cengage to consider acquisitions to boost cash flow.

—Source: Reuters

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