HERNDON, Va., Apr 15, 2011 (BUSINESS WIRE) --
K12 Inc. (NYSE: LRN), the nation's largest provider of proprietary
curriculum and online school programs for students in kindergarten
through high school, today announced that Technology Crossover Ventures
(TCV), a leading provider of growth capital to late-stage private and
public companies, has agreed to purchase a minority stake in K12 to
support the company's accelerated expansion strategy. The investment of
$125 million was structured as a private placement of 4 million shares
of common stock at a price of $31.46 per share. The transaction will
close promptly upon obtaining clearance under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976.
K12's growth strategy builds on its $200 million investment in online
curriculum and its proprietary technology platform. Healthy organic
growth of its core online individualized learning programs has been
further enhanced by development of new sales channels, alliances with
leading educational institutions, targeted acquisitions, strategic
investments and international expansion. TCV's investment will provide
K12 with the financial resources and expertise to accelerate its growth.
Jake Reynolds, a general partner of TCV, will join K12's board. Mr.
Reynolds has extensive strategy, technology, acquisition and investment
expertise that will complement an already strong board and benefit K12
management as the Company executes its mission of providing any child
with a quality education, regardless of geographic, financial or
demographic circumstance.
"As one of the largest private equity and venture capital firms, TCV
brings both established expertise in the online education market and a
strong track record of success," said Ron Packard, CEO and Founder of
K12. "The confidence TCV has shown in our current and future business
models is a firm endorsement of K12's strategy. Our alignment with TCV
is a clear indicator of our intention to move forward aggressively with
our expansion plans as a leading player in the online education sector,
and I look forward to working with TCV on our future strategy."
K12 provides its curriculum and academic services to public and private
online schools, traditional classrooms, blended school programs, and
directly to families. With its acquisition of KC Distance Learning in
2010, the Company now provides the educational products and services of
Aventa LearningTM, the KeystoneTM School and iQ
Academies(R). It also has become a leading provider of
instructional and assessment software for kindergarten through adult
learners through its acquisition of The American Education Corporation.
Students graduating from K12(R) virtual schools have been
accepted to hundreds of higher education institutions including many of
the nation's top-ranked colleges and universities.
For the 2010-2011 school year, K12 serves online public schools in 27
states. K12 also operates online private schools including the
accredited K12 International AcademyTM, the
KeystoneTM School, and the recently launched the George
Washington University Online High School. K12 also partnered with
Middlebury College in a joint venture called Middlebury Interactive
Languages to create and distribute innovative online language courses
for pre-college students. Most recently, K12 entered into a strategic
investment to acquire a minority interest in Web International English,
a leader in English language training for thousands of students in China.
"K12 is an innovative education technology company with tremendous
growth potential that exemplifies the leadership we look for in our
portfolio companies," said Jake Reynolds. "We believe K12 is now well
positioned to build on its proven success in expanding the global
markets for its popular online education solutions. I look forward to
working with Ron, the K12 Board and management in helping K12 to achieve
its full potential."
About TCV
Technology Crossover Ventures (TCV), founded in 1995, is a leading
provider of growth capital to technology companies, providing funds to
later-stage private and public companies. With $7.7 billion in capital
under management, TCV has made growth equity, PIPE and recapitalization
investments in over 170 companies leading to 47 initial public offerings
and more than 30 strategic sales or mergers. Representative investments
include Altiris, Capella Education Company, C|NET, eHarmony,
Embanet-Compass Knowledge Group, Expedia, Facebook, Fandango, Groupon,
HomeAway, Netflix, Orbitz, RealNetworks, TechTarget, Travelport, Webroot
and Zillow. TCV has 12 partners and is headquartered in Palo Alto,
California with offices in New York, NY. For more information about TCV,
visit www.tcv.com.
About K12 Inc.
K12 Inc. (NYSE:LRN), a technology-based education
company, is America's largest provider of proprietary curriculum and
online education programs for students in kindergarten through high
school. Founded in 2000, K12 has provided over 2 million courses to
students worldwide. K12 offers its curriculum and academic services to
public and private online schools, traditional classrooms, hybrid school
programs, and directly to families. K12 also operates online public and
private schools serving tens of thousands of students in the U.S. and
worldwide. More information can be found at www.K12.com
Statements contained in this news release not related to historical
facts may be deemed forward-looking statements as that term is defined
in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties
(described in the Company's SEC filings) that could cause actual results
to differ.
© 2011 K12Inc. and Technology Crossover Ventures. K12 and
iQ Academies are registered trademarks and the K12 logo, K12
International Academy, Aventa Learningand Keystone are a
trademarks of K12 Inc or its subsidiaries. All other trademarks are the
property of their respective owners.
SOURCE: K12 Inc.
For Technology Crossover Ventures
Kinetic.PR
Shifali Erasmus-Bhagat, 510-565-5655
shifali@kineticprllc.com
or
K12 Inc.
Media:
Jeff Kwitowski, 703-483-7281
Vice President, Public Affairs
jkwitowski@K12.com
or
Investor Relations:
Keith Haas, 703-483-7077
Senior Vice President, Finance and Investor Relations
khaas@K12.com