NEW YORK, Dec. 29 /PRNewswire-FirstCall/ -- The Princeton Review, Inc.
(Nasdaq: REVU), a leading provider of test preparation and educational support
services, announced today that it has entered into a definitive agreement to
sell the assets of its K-12 Services Division to a subsidiary of CORE Projects
& Technologies Limited, an education technology company. The purchase price
is $9.5 million in cash plus an additional payment for working capital.
The Princeton Review announced in November that it planned to divest the K-12
Services business because it is not directly aligned with its college and
graduate school admissions test preparations and supplemental education
opportunities.
CORE Projects & Technologies, with offices in India, UK, USA and Middle East,
is a provider of products and solutions in the education domain, including
school management, assessment, accountability and IT infrastructure systems.
The company's U.S. operations are based in Atlanta, New Jersey and San
Francisco.
"I have been very impressed with CORE Projects & Technologies' commitment to
the K-12 marketplace," said Michael J. Perik, The Princeton Review's Chief
Executive Officer. "Their senior management understands the critical role that
data driven instruction can play in giving America's teachers the tools they
need to continue to improve our children's academic performance. We believe
our customers will receive the same high quality service that they learned to
expect from The Princeton Review."
Under the terms of the purchase agreement, The Princeton Review will sell
substantially all the assets of its K-12 Services business to CORE Projects &
Technologies' U.S. subsidiary, which will assume substantially all of the
liabilities of the business arising after the closing of the transaction. In
addition to the cash consideration, the buyer will pay an additional amount
equal to the net working capital of the K-12 Services business as of the
closing date of the transaction. This additional payment will be due six
months after the closing, which is subject to certain conditions, including
the buyer's receipt of bank financing. The parties currently anticipate the
closing will occur early in 2009.
"We are very excited to be able to add the K-12 Services business to our
existing education businesses," said Sanjeev Mansotra, Chairman and Managing
Director of CORE Projects & Technologies. "In our quest to become a global
player and a leader in providing best-of-breed, end-to-end solutions in the
education domain, we have been acquiring companies around the world with a
proven track record. With the acquisition of the K-12 division of The
Princeton Review, we believe we have acquired products and solutions, along
with the management team, which will not only expand our offerings in the U.S.
education market, but will also position us as a dominant player in the
education sector in the global markets like the UK and India."
About The Princeton Review
The Princeton Review (Nasdaq: REVU) is a pioneer in the world of education.
Founded in 1981 and headquartered in New York City, the Company offers private
tutoring and classroom and online test preparation to help students improve
their scores in college and graduate school admissions tests. The Company's
free website, www.PrincetonReview.com, helps over half of university-bound
students research, apply to, prepare for, and learn how to pay for their
higher education. In addition, The Princeton Review works with school
districts around the U.S. to measurably strengthen students' academic skills
by connecting ongoing assessment with professional development and instruction
and by providing districts with college and career resources for both students
and guidance counselors. The Company also authors more than 200 print and
software titles on test preparation, college and graduate school selection and
admissions, and related topics.
About CORE Projects & Technologies Ltd.
CORE Projects & Technologies Ltd. (CORE) is a USD 113 million company listed
on the Bombay and National Stock Exchanges with offices in India, US, UK and
the Middle East. The company is a global leader in Education Management
Systems with a customer base spread across the USA, UK, Africa, Bahamas and
the Caribbean. CORE has been a recipient of a "Special Jury Award" for
outstanding work done for rural and school level under the Sarva Shiksha
Abhiyan, flagship program (similar to the No Child Left Behind program in the
US) of the Government of India. CORE has also been ranked 2nd in the list of
Deloitte Technology Fast 50 companies in India.
Safe Harbor Statement
All statements in this press release that are not historical are
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements may be identified by
words such as "believe," "intend," "expect," "may," "could," "would," "will,"
"should," "plan," "project," "contemplate," "anticipate," or similar
statements. Because these statements reflect The Princeton Review's current
views concerning future events, these forward-looking statements are subject
to risks and uncertainties. The Princeton Review's actual results could
differ materially from those anticipated in these forward-looking statements
as a result of many factors, including, but not limited to, demand for the
company's products and services; the company's ability to compete effectively
and adjust to rapidly changing market dynamics; the timing of revenue
recognition from significant contracts with schools and school districts;
market acceptance of the company's newer products and services; continued
federal and state focus on assessment and remediation in K-12 education; and
the other factors described under the caption "Risk Factors" in The Princeton
Review's most recent Forms 10-K and 10-Q filed with the Securities and
Exchange Commission. The Princeton Review undertakes no obligation to update
publicly any forward-looking statements contained in this press release.
SOURCE The Princeton Review, Inc.
