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Draper Triangle Ventures is pleased to announce the acquisition of one of its earliest investments, Carnegie Learning, Inc, by Apollo Group, Inc. (NASDAQ: APOL), the largest for-profit educational institution in the world. The agreement also includes the acquisition of related technology from Carnegie Mellon University in a separate transaction, bringing the total deal value to $96.5 million.
Carnegie Learning, a developer of research-based math curricula for middle school, high school and post-secondary markets, including the adaptive Cognitive Tutor® math software, is a shining example of how the unique Pittsburgh ecosystem of academia, entrepreneurialism and early stage investment strategy works in concert to produce an environment rich with possibilities for start-up technology companies. The Company was founded atCarnegieMellonUniversityand worked closely with Draper Triangle and other investors to grow to become a market leader in providing education solutions.
Jay Katarincic, Managing Director of Draper Triangle notes, “The collaboration between the private sector and Carnegie Mellon produced a world leading education company and will continue to serve as a blueprint for future successes. It further validates our confidence in the wealth of resources available for early stage companies in and around this Midwestern region.”
Mark Kamlet, the Provost of Carnegie Mellon University and the Chairman of the Board of Carnegie Learning added, “The close working partnership between the University, the Management of the Company and Draper Triangle and the other investors is a perfect example of how technology transfer should work. Everyone involved came out a winner, including the region, given Apollo’s commitment to the future.”
Carnegie Learning is the outgrowth of 20 years of research in the field of cognitive science at Carnegie Mellon and ten years of use and refinement in the classrooms across theUnited States. As a wholly-owned subsidiary of Apollo Group, Carnegie Learning will continue to service the K-12 space from its Pittsburgh office, leveraging the broad resources of a Fortune 500 company to expand the philosophy and technology upon which the company was founded in 1998. The company’s products are in use today across theUS, including state-wide implementations inWest VirginiaandKentucky, as well as district-wide implementations in major urban districts such as Miami-Dade, Cleveland, Atlanta,Richmond and Chicago.
“This is an exciting time for Carnegie Learning,” CEO Dennis Ciccone told his employees. “Our perseverance and belief in the promise of Carnegie Learning has enabled us to re-invent the way we teach math and to build a transformative technology that has been recognized as such in the marketplace. We are fortunate to have a great group of talented employees, and the backing of investors such as Carnegie Mellon and Draper Triangle, and to be located in a region primed for the success of growing companies.”
The transaction is subject to customary closing conditions and is anticipated to be completed during the first quarter of the Company’s fiscal 2012.
East Wind Advisors acted as exclusive financial advisor to Carnegie Learning in this transaction and McGuire Woods is serving as legal counsel to Carnegie Learning.
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