McGraw-Hill Education confirmed Friday that it plans to go public. The move comes about three years after the private equity firm Apollo Group acquired the educational publishing giant from parent company McGraw-Hill Inc. for approximately $2.5 billion.
In its registration statement filed September 4, MHE highlighted its transformation “from a print-centric producer of textbooks and instructional materials to a leader in the development of digital content and technology-enabled adaptive learnjng solutions that are delivered anywhere, anytime.” The company had total revenue in 2014 of $1.85 billion, and a net loss of $331 million.
Digital sales accounted for about 28% all revenue in 2014. MHE invested $150 million in digital development in 2014, up from $90 million in 2013, with expectations to invest $175 million this year.
MHE is divided into four major groups: higher education (which accounted for 45% of all revenue in 2014, with 38% of divisional sales coming from digital products); K-12 (which accounted for 31% of all revenue last year, with 21% of sales coming from digital); international (which generated 18% of revenue, with 9% of sales digital); and professional (which accounted for 6% of revenue with 44% of sales derived from digital products).
For the first six months of 2015, MHE had revenue of $670.1 million. That figure is down form $679 million in the first half of 2014. The net loss at the company increased to $256.2 million, from $133.7 million in the first six months last year.
