McGraw-Hill Education

Company Information & Key Figures

About

McGraw-Hill Global Education Holdings, LLC (MHGE) is a learning science company targeting the higher education, professional learning and information markets both in the US and internationally with content, tools and services delivered via digital, print and hybrid solutions. MHGE distributes products in nearly 60 languages across 154 countries to users including post-secondary students, instructors, professionals and institutions.

McGraw-Hill School Education Holdings (MHSE) headquartered in Columbus, OH, is a provider of digital, print and hybrid instructional materials, as well as assessment products and services.

MHSE and its larger sister company MHGE, with which MHSE has shared services arrangements, were acquired by funds affiliated with Apollo Global Management, LLC in March 2013 for a combined 2.4bnUSD purchase price. (http://bit.ly/1KiRrrZ)

In 2016, McGraw-Hill Education had announced to preparing for an IPO in the second half of the year, which however did not happen. (Bloomberg 26.01.2016)

Analysis & Key Developments

Financial

“McGraw-Hill Global Education is controlled by McGraw-Hill Education Intermediate Holdings, a company formed in March 2013 when Apollo Global Management, the private equity firm that acquired McGraw-Hill Education in early 2013, divided the global education segment from the school education group; revenue from the school group is not included in results from MHGE.” (PW 07.04.2015)

For 2017, revenue declined to 1,711mUSD (down from 1,757mUSD in 2016 and 1,830mUSD in 2015, with a net loss of declining from 179mUSD in 2015 to 66mUSD in 2017.

The company described 2017 as “a successful year of market share gains, digital performance and operating cash flow generation” saying it had “continued to successfully navigate the ongoing transition from print to digital in Higher Education and achieved stability in Higher Education net sales after three consecutive years of decline.

In spring 2018, the complete leadership team has been changed at the company, with Nana Banerjee coming in as the new President and CEO, William Okun overseeing the Higher Education Group, Simon Allen as President of the International Group, Heath Morrison as President of the School Group, and Scott Grillo as President for the Professional Group.

Digital

MHE claims to have succeeded in transforming the company’s business from a being „printcentric producer of textbooks and instructional materials“ to becoming „a leader in the development of digital content and technology-enabled adaptive learning solutions that are delivered anywhere, anytime.“ AR2017) Higher Education accounts now for 42 % of total revenue, and K-12 for 35%. Around 62% of Higher Education Billings was derived from digital learning solutions in 2017, while increasingly shifting the revenue models to subscriptions.

Products include the open learning environment ‚connect‘ with 3.6 million paid activations by the end of 2017, ‚ALEKS‘, an adaptive learning toolset for math, science and other subjects in the K-12 and higher education markets with 4 million unique users by the end of 2017, and Learnsmart, an adaptive learning program for personalizing learning and designs targeted study paths for students.