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Carnegie Learning Acquires Scientific Learning to Strengthen Education Technology Portfolio
Wednesday 16 September 2020

An affiliate of US-based education and assessment company Carnegie Learning, Inc. has acquired US-based online reading and language software provider Scientific Learning Corp. (OTC: SCIL) to strengthen digital literacy offerings, the company said.

Scientific Learning was acquired in an all cash transaction valued at approximately USD 15m.
Under the terms of the agreement, Carnegie Learning acquired all of the outstanding shares of Scientific Learning common stock for a cash payment of USD 0.53 per share.

Scientific Learning is now a privately-owned subsidiary of Carnegie Learning and will no longer be listed on the OTC Markets.

The combination will strengthen the education technology portfolio of both entities to further drive forward their joint mission of improving student learning outcomes through leading-edge technology built from and validated by rigorous research.

A portion of the transaction value was applied to fund Scientific Learning's approximately USD7.0 m in subordinated debt, other debt and certain selling and transaction-related expenses.

Another portion of the transaction value has been placed in escrow to be released upon satisfaction of certain conditions and following a customary working capital adjustment period in accordance with the terms and conditions of the agreement.

Scientific Learning was advised by Cherry Tree and Associates, LLC, an investment banking firm specialising in serving education technology companies. Loeb and Loeb LLP served as Scientific Learning's legal counsel.

Scientific Learning is an SaaS education company that delivers neuroscience-based educational technologies.

Carnegie Learning, Inc. provides artificial intelligence in education and formative assessment.
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Date Published: 16/09/2020

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