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Plato Learning picks up Educational Options

by Chris Nolter  |  Published November 10, 2011 at 11:19 AM
Plato-Learning-picks-up-Educational-Options227.jpgAfter losing out in the bidding for Renaissance Learning Inc. this summer, education technology company Plato Learning Inc. said Wednesday, Nov. 9, that it would purchase online course provider Educational Options Inc.

Plato provides online courses, test preparation, testing services and other educational applications. The Minneapolis tech company is backed by Thoma Bravo LLC and HarbourVest Partners LLC.

EdOptions develops online classes that supplement middle school and high school curricula. The Falls Church, Va., company has a software unit that develops applications for elementary schools.

The company also runs EdOptions Online Academy, an accredited online high school. For instance, Washington state's Digital Learning Department, formed by a 2009 bill, has approved EdOptions Academy to provide online courses in subjects such as math and history. EdOptions' website said that the Academy also serves home-schooled students.

The online-schooling sector has been active. U.K. publisher Pearson plc is paying $400 million for Internet-schooling company Connections Education LLC, which is backed by Apollo Management LP and Sterling Partners. The Baltimore company operates the Connections Academy, which, like EdOptions Online Academy, is an accredited Internet school.

Greenwich, Conn.-based Weld North Holdings LLC purchased middle- and high school online class provider e2020 Inc. Weld North is a partnership between Kohlberg Kravis Roberts & Co. LP and Jonathan Grayer, who formerly ran Washington Post Co.'s Kaplan Inc. education unit.

This summer, Plato Learning engaged in a bidding war with European private equity firm Permira over education technology company Renaissance Learning. Plato outbid Permira. However, Renaissance Learning co-founders and majority shareholders Terrance and Judith Paul favored Permira's $455 million deal.

Plato plans to remain acquisitive.

Thoma Bravo partner Holden Spaht said in a press release that the PE firm would "continue to support the company's growth organically and through additional strategic acquisitions."
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Tags: Apollo Management LP | Connections Education LLC | Digital Learning Department | e2020 Inc. | EdOptions Online Academy | education technology | Educational Options Inc. | HarbourVest Partners LLC | Holden Spaht | Jonathan Grayer | Kaplan Inc. | Kohlberg Kravis Roberts & Co. LP | online schooling | Pearson plc | Plato Learning Inc. | Renaissance Learning Inc. | Sterling Partners | Thoma Bravo LLC | Washington Post Co. | Weld North Holdings LLC

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Chris Nolter

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