By Lisa Kerner
Charlotte, N.C., Jan. 29 - Educate, Inc. said it has agreed to be acquired for $8 per share by a group of investors led by company chairman and chief executive officer Christopher Hoehn-Saric and president and chief operating officer Peter Cohen.
Investors also include Sterling Capital Partners and Citigroup Private Equity, according to a company news release.
The transaction, valued at $535 million including assumed debt, is expected to close in the second quarter of 2007.
Apollo Sylvan, LLC and Apollo Sylvan II, LLC, which hold roughly 53% of Educate's common stock, have already agreed to vote in favor of the proposed merger.
Baltimore-based Educate provides supplemental education services and products to students and their families.
Sterling Capital Partners is an affiliate of Sterling Partners private equity fund.
Citigroup Private Equity is the primary investment arm of Citigroup Inc., a financial services company.
| Acquirer: | Sterling Capital Partners, Citigroup Private Equity
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| Target: | Educate, Inc.
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| Payment per share: | $8.00 per share
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| Announcement date: | Jan. 29
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| Expected closing: | Second quarter of 2007
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| Stock price for target: | Nasdaq: EEEE; $7.61 on Jan. 26
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| Stock price for acquirer: | NYSE: C; $54.67 on Jan. 26
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