Kaplan Bows Out Of Online High Schools, Soon After Getting In

Washington Post Co.'s (WPO) Kaplan Inc. is selling its online high school business to K12 Inc. (LRN), just months after buying another competitor to grow the business itself.

Kaplan Virtual Education, which provides online education for grades six through 12, bought Insight Schools Inc. from Apollo Group Inc. (APOL) in February. It is now selling that brand, as well as the schools branded under Kaplan Virtual Education, to K12.

Terms of the deal, which is expected to be completed within 45 days, weren't disclosed. Terms of the Apollo deal also weren't disclosed.

"While our experience in online learning made the Insight Schools an attractive acquisition with long-term potential, we determined that the timing was not right for us to devote intensive energy and resources to this initiative right now," a Kaplan spokesman said in an emailed statement. "Exiting this business will enable us to focus on our core businesses of higher education and test preparation."

Kaplan didn't break out sales figures or earnings for Kaplan Virtual Education, which was founded in 2007. Its parent unit, Kaplan Ventures -- which also includes Kaplan EduNeering compliance training programs and Kidum Group, an Israeli test preparation program -- reported $29 million in revenue and a $5.49 million operating loss in the first quarter.

According to a Washington Post securities filing, Kaplan Virtual Education served about 3,000 students in the latest year, while reports from the time of the Insight Schools acquisition put that operation's enrollment at about 7,500.

K12 has been expanding rapidly as online schooling gains in popularity across the country. In November, the company bought American Education Corp., a provider of instructional software, and it snatched up KC Distance Learning Inc. in July. The company reported enrollment of 101,030 in the latest quarter.

A representative from K12 wasn't immediately available for comment.

-By Melissa Korn, Dow Jones Newswires; 212-416-2271; melissa.korn@dowjones.com

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