Cambium Learning Joins Move to Private Equity

Cambium Learning Group is being sold to private equity Veritas Capital, with holders of Cambium common stock entitled to receive $14.50 in cash per share at the expected closing of the deal in fourth quarter 2018 or first quarter 2019.

The Cambium sale comes as private equity companies have stepped up their educational technology investments. Francisco Partners acquired a majority stake in Discovery Education in April and followed that with the acquisition of Renaissance. Also in April, Onex Corp. bought a stake in PowerSchool.

Cambium delivers software-as-service resources and instructional products and professional development through three business units: Learning A-Z, provider of online differentiated instruction for elementary school reading, writing and science; ExploreLearning, which offers online interactive math and science simulations and a math fact fluency solution; and Voyager Sopris Learning, which sells blended solutions developed to help struggling learners increase achievement in literacy and math. The technology-centered Learning A-Z and ExploreLearning business have been growing, while sales have lagged at the legacy Voyager business.

Cambium generated $77.6 million in the first half 2018, up 1.7%. Bookings grew 11% in the second quarter led by double-digit increases at the company’s software-as-service businesses.

Cambium’s outstanding credit facility will be repaid at closing. Also, immediately prior to the closing, Cambium will complete its previously announced acquisition of VKIDZ Holdings Inc.

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