The company has agreed to sell its education unit to the private-equity firm Apollo Global Management. The two parties reached the deal after McGraw-Hill entertained offers including a bid from the majority owner of Cengage Learning, another textbook publisher. The sale is expected to close next month or early next year if regulators approve the deal.
The final sales price is lower than McGraw-Hill had once hoped to get for its education business, reflecting the continued difficulties of the education business in general. On the K-12 front, states have cut back significantly on their textbook spending because of the difficult economy while the higher-education business is undergoing a digital transition that has attracted a number of aggressive new companies offering educational products and services.
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