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
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.
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)).
- Company website
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