DOW JONES NEWSWIRES
Apollo Group Inc. (APOL) agreed to a pair of transactions
totaling $96.5 million to acquire math publisher Carnegie Learning
Inc. and related technology from Carnegie Mellon University, as the
for-profit college operator aims to provide more tools to address
math education.
Co-Chief Executive Gregory Cappelli said Carnegie Learning
addressed "a fundamental skills gap in mathematics that is
prevalent among today's postsecondary students." Apollo agreed to
pay $75 million for the company, which publishes research-based
math curricula including the Cognitive Tutor math software. The
$21.5 million payment to the university for the related technology,
meanwhile, is payable over a 10-year period.
Carnegie Learning was founded in 1998 by a team of Carnegie
Mellon University scientists, in conjunction with veteran math
teachers. The publisher provides math instruction to more than
600,000 students in 3,000 schools nationwide.
Apollo expects the transactions will add to earnings by 7 cents
to 9 cents in fiscal 2012. The deals are expected to close in the
first quarter of that year, which typically ends in November.
Last month, Apollo reported its fiscal third-quarter adjusted
profit fell less-than-expected as expenses slid, but the company
continued to see weak student enrollment. The operator of online
and brick-and-mortar University of Phoenix schools has seen
enrollments tumble after overhauling its recruiting practice and
instituting an orientation program to weed out students unlikely to
graduate.
Shares rose 1.8% to $50.93 after hours.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com