Apollo Group, Inc. (Nasdaq: APOL) (“Apollo Group,” “Apollo” or
the “Company”) today announced that it has entered into an
agreement to acquire 100% of the stock of Carnegie Learning, Inc.,
a publisher of research-based math curricula including the adaptive
Cognitive Tutor® math software, for $75.0 million. In a separate
transaction, Apollo also announced it has agreed to acquire related
technology from Carnegie Mellon University for $21.5 million,
payable over a 10-year period.
The acquisitions allow Apollo to accelerate its efforts to
incorporate adaptive learning into its academic platform and to
provide tools to help raise student achievement in mathematics,
which supports improved retention and graduation rates.
“We are excited to partner with Carnegie Learning, which will
allow us to integrate their high quality educational and adaptive
learning technology into our platform,” said Gregory Cappelli,
Co-CEO of Apollo Group and Chairman of Apollo Global. “Carnegie
Learning offers a highly individualized, innovative solution,
addressing a fundamental skills gap in mathematics that is
prevalent among today’s postsecondary students.”
Carnegie Learning was founded in 1998 by a team of cognitive and
computer scientists from Carnegie Mellon University, in conjunction
with veteran mathematics teachers. Representative of one of the
university’s successful spinouts, Carnegie Learning provides math
instruction to more than 600,000 students in 3,000 schools
nationwide.
“Carnegie Learning has developed what we believe is a
differentiated approach to learning that will help the students in
all of our universities achieve classroom success,” said Chas
Edelstein, Co-CEO of Apollo Group. “In Carnegie Learning, we are
working with a talented team and a market leader in adaptive
learning. We are also exploring opportunities for further
collaboration with Carnegie Mellon University in the science of
learning.”
Carnegie Learning integrates adaptive learning technology into
instructional, assessment, and problem-solving activities to
strengthen student conceptual understanding and underlying math
proficiency. Adaptive learning methodologies adjust the
presentation of educational curriculum to individually address a
student's developmental needs, while continuously assessing
comprehension, resulting in a more effective learning
experience.
“We believe that adaptive and personalized learning is the
future of education,” said Dennis Ciccone, CEO of Carnegie
Learning. “We are seeing significant, measurable results in student
engagement and performance in mathematics, an essential subject to
this generation of learners who must prepare to compete in a highly
competitive global economy. We look forward to expanding the
effectiveness of these adaptive learning methodologies into the
Apollo academic platforms and continuing to serve our students and
teachers.”
As a wholly owned subsidiary of Apollo Group, Carnegie Learning
will continue to service the K-12 space, where it is successfully
implementing its innovative learning solutions and professional
development programs in districts around the country. Given
Apollo’s postsecondary focus, the Company intends to evaluate
strategic alternatives for the K-12 portion of the business in
order to support Carnegie Learning’s continued success in this
market.
The Company currently anticipates the acquisitions to be value
accretive over the long term and $0.07-$0.09 dilutive to earnings
per share in fiscal 2012, in part due to non-cash amortization of
intangibles. The acquisitions are subject to customary closing
conditions and are anticipated to be completed during the first
quarter of fiscal 2012.
About Apollo, Inc.
Apollo Group, Inc. is one of the world's largest private
education providers and has been in the education business for more
than 35 years. The Company offers innovative and distinctive
educational programs and services both online and on-campus at the
undergraduate, master’s and doctoral levels through its
subsidiaries: University of Phoenix, Apollo Global, Institute for
Professional Development and College for Financial Planning. The
Company's programs and services are provided in 40 states and the
District of Columbia; Puerto Rico; Latin America; and Europe, as
well as online throughout the world.
For more information about Apollo Group, Inc. and its
subsidiaries, call (800) 990-APOL or visit the Company’s website at
www.apollogrp.edu.
About Carnegie Learning
Carnegie Learning, Inc. is a leading publisher of innovative,
research-based math curricula for middle school, high school, and
post-secondary students. Providing differentiated instruction in
schools across the United States, Carnegie Learning is helping
students to succeed in math as a gateway to graduation and the 21st
century. Founded by cognitive and computer scientists from Carnegie
Mellon University in conjunction with veteran mathematics teachers,
Carnegie Learning is helping to re-invent mathematics instruction,
empowering students to produce significantly improved math scores
in a diverse spectrum of school districts. Carnegie Learning, Inc.
is located in Pittsburgh, Pennsylvania and is represented by the
Western Pennsylvania office of McGuireWoods. For more information
about Carnegie Learning, Inc. visit the website at
www.carnegielearning.com.
About Carnegie Mellon
University
Carnegie Mellon is a private, internationally ranked research
university with programs in areas ranging from science, technology
and business, to public policy, the humanities and the arts. More
than 11,000 students in the university’s seven schools and colleges
benefit from a small student-to-faculty ratio and an education
characterized by its focus on creating and implementing solutions
for real problems, interdisciplinary collaboration and innovation.
A global university, Carnegie Mellon’s main campus in the United
States is located in Pittsburgh, Pennsylvania. It has campuses in
California’s Silicon Valley and Qatar, and programs in Asia,
Australia, Europe and Mexico.
Carnegie Mellon’s Greenlighting Startups™ initiative has helped
to create more than 300 companies, like Carnegie Learning, over the
past 15 years. Greenlighting StartupsTM is an ongoing initiative
comprised of multiple campus incubators, designed to transform
research from award-winning professors and world-class students
into thriving commercial enterprises. For more information about
Carnegie Mellon visit the university website at www.cmu.edu and
learn more about Greenlighting StartupsTM at
www.cmu.edu/startups.
Forward-Looking Statements Safe
Harbor
Statements about Apollo Group and its business in this release
which are not statements of historical fact, including statements
regarding Apollo Group's future strategy and plans and commentary
regarding future results of operations and prospects, are
forward-looking statements, and are subject to the Safe Harbor
provisions created by the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on current
information and expectations and involve a number of risks and
uncertainties. Actual plans implemented and actual results achieved
may differ materially from those set forth in or implied by such
statements due to various factors, including without limitation (i)
changes in the overall U.S. or global economy, (ii) changes in
enrollment or student mix, including as a result of the roll-out of
the Company's University Orientation program to all eligible
students in November 2010, (iii) the impact of recent changes in
the manner in which the Company evaluates and compensates its
counselors that advise and enroll students, (iv) changes in law or
regulation affecting the Company's eligibility to participate in or
the manner in which it participates in U.S. federal student
financial aid programs, including, specifically, the impact on the
Company’s business of the operational and other changes necessary
to comply with the final program integrity regulations published by
the U.S. Department of Education on October 29, 2010, and the final
gainful employment regulations published by the Department on June
13, 2011, (v) changes in the Company's business necessary to remain
in compliance with U.S. federal student financial aid program
regulations, including the so-called 90/10 Rule and the limitations
on cohort default rates, and to remain in compliance with the
accrediting criteria of the relevant accrediting bodies, and (vi)
other regulatory developments. For a discussion of the various
factors that may cause actual plans implemented and actual results
achieved to differ materially from those set forth in the
forward-looking statements, please refer to the risk factors and
other disclosures contained in Apollo Group's Form 10-K for fiscal
year 2010 and subsequent Forms 10-Q, and other filings with the
Securities and Exchange Commission, all of which are available on
the Company's website at http://www.apollogrp.edu.
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