17 April 2023
Cengage Group has announced it has signed a definitive agreement with funds managed by affiliates of Apollo Global Management, Inc. whereby Apollo Funds will purchase $500 million of a new series of convertible preferred stock of Cengage Group, subject to certain adjustments. The transaction is expected to close by June 30, 2023, subject to customary closing conditions.
“This investment is a strong affirmation of our performance and strategy by an investor who has deep knowledge of our industry and a track record of value creation,” said Michael E. Hansen, CEO, Cengage Group. “By replacing debt with equity capital from Apollo Funds, we are meaningfully reducing outstanding debt giving us optionality to invest in our portfolio of growing businesses.”
Apollo Private Equity Partner Itai Wallach said, “We are thrilled to be working with the Cengage Group management team and its Board as the Company continues to execute against its business plan. We believe our deep experience in the education sector will help to further accelerate the Company’s transformation from print to digital and drive further growth across its business.”
With more than a century of experience in the education sector, Cengage Group has evolved from a traditional print publisher to an edtech portfolio company that supports all students, from middle school through graduate school and skills education, with quality content and technology. In the past year, Cengage Group has acquired Infosec, a leading provider of cybersecurity education and training, and launched Ready to Hire, a dynamic new solution to close skilled labor gaps and expand access to quality training. With the investment from the Apollo Funds, Cengage Group intends to continue its focus on Education for Employment by investing in products and services that help millions of students leverage education to gain the skills and competencies needed to be job ready.