Cambium Learning Group, a Dallas-based, publicly traded education company focused primarily on at-risk and special student populations, announced today that its majority shareholder, the New York-based private equity firm Veronis Suhler Stevenson, is exercising its subscription right to acquire an additional $20 million of common stock in the company.
On Tuesday, Cambium reported net income for the second quarter of $3.8 million or $0.09 per share, compared to a net loss of $2.2 million or $0.05 per share in the year-ago quarter. Revenue for the quarter grew 19 percent to $57.2 million from $47.9 million in the year-ago quarter.
Cambium Learning Group, Inc. (Nasdaq: ABCD, the “Company”), a leading educational company focused primarily on serving the needs of at-risk and special student populations, announced today that the Company received notice from VSS-Cambium Holdings III, LLC, our majority shareholder which is controlled by Veronis Suhler Stevenson (“VSS”), that it is exercising its subscription right to acquire an additional $20 million of common stock in the Company. This subscription right was granted as part of the stockholder agreement relating to the merger between the Company and Voyager Learning Company in December 2009. The Company will issue 7,246,376 shares of its common stock to VSS-Cambium Holdings III, LLC as a result of this investment.
The Company and VSS expect to close the transaction in the next few days. The Company will use the cash from this additional investment from VSS for general corporate purposes.
About Cambium Learning Group, Inc.
Cambium Learning Group (Nasdaq: ABCD) is the leading educational company focused primarily on serving the needs of at-risk and special student populations. The company operates three core divisions: Voyager, which provides comprehensive interventions; Sopris, which is known for supplemental solutions; and Cambium Learning Technologies, which comprises IntelliTools®, Kurzweil Educational Systems®, Learning A–Z, and ExploreLearning. Cambium Learning Group is committed to providing research-based solutions that help educators raise the achievement levels of preK–12 students as well as adult learning communities. The company’s website is www.cambiumlearning.com.