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Archipelago Learning (NASDAQ:ARCL), which runs a subscription-based online education platform for students K-12, is expected to price its IPO this week.

Business Overview (from prospectus)

Archipelago Learning is a leading subscription-based online education company. We provide standards-based instruction, practice, assessments and productivity tools that improve the performance of educators and students via proprietary web-based platforms. Study Island, our core product line, helps students in Kindergarten through 12th grade, or K-12, master grade level academic standards in a fun and engaging manner. As of September 30, 2009, Study Island products were utilized by approximately 8.9 million students in 21,000 schools in 50 states. In the 2008-2009 school year, students answered over 2.8 billion of our practice questions. We recently began offering online postsecondary programs through our Northstar Learning product line.

Offering: 6.3 million shares at $15 - $17 per share. Net proceeds of approximately $42.7 million will be used for general corporate purposes.

Lead Underwriters: BofA Merrill Lynch (NYSE:BAC), William Blair, Robert Baird

Financial Highlights:

Our service revenue for the nine months ended September 30, 2009 was $32.7 million, representing an increase of $10.4 million, or 46.4%, as compared to service revenue of $22.3 million for the nine months ended September 30, 2008... Cost of revenue for the nine months ended September 30, 2009 increased by $1.5 million, or 117.3%, to $2.7 million from $1.3 million for the nine months ended September 30, 2008... Sales and marketing expense for the nine months ended September 30, 2009 increased by $1.1 million, or 11.7%, to $10.6 million from $9.5 million for the nine months ended September 30, 2008... Net income for the nine months ended September 30, 2009 increased by $6.1 million, or 762.7%, to $6.9 million from $0.8 million for the nine months ended September 30, 2008.

Competition:

Northstar Learning competes primarily with textbook, workbook, study guide and software products published by the large postsecondary publishers, such as Pearson (NYSE:PSO), McGraw-Hill (MHP), Cengage, Wiley (NYSE:JW.A) and Mosby (Reed Elsevier (NYSE:RUK)).

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Source: Archipelago Learning Hopes to Ace IPO