Archipelago Learning Up 21% After Acquisition Offer

Shares of Archipelago Learning

are up 21% after the company announced it would be acquired by PLATO Learning for $11.10/share. The company announced today that it has entered into a definitive agreement under which PLATO Learning, a portfolio company of Thoma Bravo, LLC, will acquire Archipelago Learning for $11.10 per share in cash, representing an equity value of approximately $291 million. The transaction represents a premium of 23 percent to the closing price of $9.04 on March 2, 2012, and a premium of 17 percent to the company's weighted average trading price for the last twelve months. Tim McEwen, chairman, chief executive officer and president of Archipelago Learning said, “This transaction is an excellent outcome for each of our constituents: the millions of students who use our products on a daily basis; the thousands of teachers who leverage our products to improve student performance and learning outcomes; and our shareholders, for whom this represents an attractive premium. PLATO Learning is an excellent partner for Archipelago Learning, with a strong presence in online core curriculum that is highly complementary to our online supplemental curriculum. With our combined financial strength and additional support from Thoma Bravo, we have the means to support our continued innovation and expansion to more comprehensively meet the needs of our customers.”