Princeton Review To Acquire Distance Learning Firm For $170M
The Princeton Review of Framingham has signed a definitive agreement to acquire the Penn Foster Education Group Inc. for $170 million in cash.
The acquisition would make the Princeton Review one of the largest providers of post-secondary education services, such as test preparation materials, in the United States.
Penn Foster is owned by private equity firm the Wicks Group and is a career-focused distance learning institution that serves college, high school and vocational students in more than 150 countries, the company said.
Based on 2008 results, the combined companies would have brought in $238 million in revenue, Princeton said. During that year, Princeton brought in $139 million in revenue and Penn Foster said it earned $90 million.
Under terms of the agreement, Penn Foster will become a wholly owned subsidiary of Princeton and will remain at its headquarters in Scranton, Pa.
Princeton said it expects to close the acquisition by the end of the year and has a $155 million debt financing arrangement and $30 million in equity financing in place to do the deal.
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