A year after a proposed merger between Cengage and McGraw Hill Education collapsed amid significant regulatory opposition, the investment firm that owns McGraw Hill sold it to another firm for $4.5 billion.
Apollo Global Management bought what was then called McGraw Hill Education for $2.5 billion in 2012, after the publishing giant split into two. Over the last eight years, McGraw Hill has, like most former textbook publishers, continued to morph into an educational content and software company, with increasing proportions of its revenue coming from digital products.
Last spring Cengage and McGraw Hill called off their plan to merge their two businesses because the Justice Department planned to require the two to sell off too many of their assets.
Tuesday, Platinum Equity said it would pay nearly $4.5 billion to buy McGraw Hill from Apollo.