Framingham, Mass., April 27, 2011 -- The Princeton Review, Inc. (NASDAQ: REVU), a leading provider of test preparation, educational support services and online career education services, has entered into a definitive agreement to sell the assets of its Community College Partnerships ("CCP") business to Higher Education Partners LLC for $4 million in cash, less the value of certain current liabilities assumed by the purchaser.
The Princeton Review formed the CCP division in March 2010 to operate a new venture with community colleges to expand distance and hybrid learning opportunities in the allied health care field. Higher Education Partners LLC was recently formed by Michael J. Perik, The Princeton Review's former chief executive officer, along with Gerard Kavanaugh and Monitor Clipper Partners.
Separately, The Princeton Review's subsidiary, Penn Foster, will license to Higher Education Partners certain content of its Virtual High School for use in connection with the CCP business through 2013.
"This divestiture reflects our renewed focus on our core business and leveraging our core brands," said John Connolly, interim president and CEO of The Princeton Review. "It also puts the CCP business into good hands with Michael and Gerry and their team at Higher Education Partners, as they were instrumental in CCP's creation and development, and have remained passionate about its success."
Additional Transaction Terms
Under the terms of the purchase agreement, The Princeton Review will sell all of the assets used exclusively in the CCP business to Higher Education Partners, which will assume specified Under the terms of the purchase agreement, The Princeton Review will sell all of the assets used exclusively in the CCP business to Higher Education Partners, which will assume specified liabilities related to the CCP business, including all liabilities of the CCP business arising after the closing of the transaction.
The transaction, which is subject to conditions including the consents of certain third parties, is currently expected to close in the next few weeks. The Princeton Review expects to treat the CCP business as a discontinued operation for accounting purposes.
About The Princeton Review
The Princeton Review (Nasdaq: REVU) has been a pioneer and leader in helping students achieve their higher education goals for more than 28 years through college and graduate school test preparation and private tutoring. With more than 165 print and digital publications and a free website, www.PrincetonReview.com, the company provides students and their parents with the resources to research, apply to, prepare for, and learn how to pay for higher education. The Princeton Review partners with schools and guidance counselors throughout the U.S. to assist in college readiness, test preparation and career planning services, helping more students pursue postsecondary education.