Renaissance's Fairy Tale Ending

Mergers and Acquisitions

Renaissance's Fairy Tale Ending

Oct 19, 2011

FAIRY-TALE ENDING? The tug o' war over Renaissance Learning, whose products include Accelerated Reader and Accelerated Math, ended on Tuesday when shareholders accepted a $455 million bid from European private equity firm, Permira Fund, even when Minn.-based Plato Learning dangled out an extra $41 million. A federal judge in Wisconsin (when Renaissance is incorporated) had to rule that the company was allowed to take the lower bid: more typically, boards exercise their fiduciary responsibility to shareholders by accepting the biggest check. One way to sidestep the problem: the founders, who owned 69% of the company, gave other shareholders a $16.60 price per share; they took a mere $15 a share. (Even so, Plato's bid amounted to an across-the-board $16.90 a share.) No word on future plans from Permira, which maintains a diverse, international portfolio of about two dozen investments.

Learn more about EdSurge operations, ethics and policies here. Learn more about EdSurge supporters here.

More from EdSurge

Get our email newsletterSign me up
Keep up to date with our email newsletterSign me up