Platinum Equity To Buy McGraw Hill From Apollo Funds For $4.5 Bln - Quick Facts

Investment firm Platinum Equity announced Wednesday that it has entered into a definitive agreement to acquire McGraw Hill, a provider of educational content and digital platforms, from funds managed by affiliates of Apollo Global Management, Inc. (APO) for around $4.5 billion.

The sale is expected to be completed this summer, subject to customary closing conditions and regulatory approval.

McGraw Hill, which was founded in 1888, provides outcome-focused learning solutions, delivering both curated content and digital learning tools and platforms to the classrooms. The company provides services to approximately 250,000 higher education instructors, 13,000 pre-kindergarten through 12th grade school districts, and a wide variety of academic institutions, professionals and companies.

Its products are distributed in more than 100 countries across the Americas, Asia-Pacific, Europe, India and the Middle East.

McGraw Hill currently generates more than $1 billion a year in revenue from digital products. Digital revenue as a percentage of revenue is more than 60 percent at present and over 80 percent in its Higher Education business, compared to less than 25 percent in 2013, at the time of the Apollo Funds' acquisition.

Platinum Equity founder and CEO Tom Gores said, "The pandemic has been especially disruptive to education, and investing in innovative solutions, and digital learning tools in particular, is more important than ever."

Following the acquisition, McGraw Hill CEO Simon Allen and his senior leadership team will continue to lead the business under Platinum's ownership.

In the deal, Willkie Farr is providing financing counsel to Platinum Equity. Macquarie Capital and BMO Capital Markets Corp. are serving as financial advisors to McGraw Hill.

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