ANN ARBOR ? Electronic publisher ProQuest Company has tentatively acquired Voyager Expanded Learning for $360 million in cash and stock, giving ProQuest a stronger presence in the K-12 market. ProQuest also develops electronic products for the automotive and power equipment markets.
ProQuest will acquire the stock of Voyager for $340 million in cash and $20 million in ProQuest Company stock. ProQuest may pay up to $20 million in additional consideration based on various factors including Voyager’s operating performance. The cash portion of the payment will be financed through debt.
“The acquisition of Voyager establishes a growth platform for ProQuest in the area of K-12 curriculum and intervention solutions,” said ProQuest CEO Alan Aldworth.
Aldworth said in a conference call that he expects revenue growth rates to run at about 20 percent over the next several years. For calendar 2004, Voyager is on pace to generate revenue of approximately $85 to $90 million. ProQuest expects that 2005 earnings including Voyager will be from $2.20 to $2.40 per share.
Based in Dallas, Texas, Voyager provides research-based reading curriculum and professional development programs for school districts throughout the United States. Voyager currently has 180 employees, including about 60 in sales.
Voyager’s reading programs are currently used in 500 school districts, including Dallas, New York City, Philadelphia, Phoenix, Miami, Las Vegas, and Washington, D.C. Voyager also provides professional development for teachers.
Randy Best, chairman, chief executive officer and co-founder of Voyager, will act as a consultant for the combined company. Best, the largest shareholder in Voyager, will also join the ProQuest Board. Other key members of Voyager’s senior management team will remain with the company.
ProQuest publishes information solutions for the education, automotive and power equipment markets.
