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 2.4 billion USD purchase price.

In 2016, McGraw-Hill Education announced the preparation for an IPO in the second half of the year, which did not happen.

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.

For 2017, revenue declined to 1.71 billion USD (down from 1.76 billion USD in 2016 and 1.83 billion USD in 2015, with a net loss from 179 million USD in 2015 to 66 million USD 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,” according to the annual report.

In spring 2018, the leadership team was completely changed, with Nana Banerjee becoming 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 “printcentric producer of textbooks and instructional materials” to “a leader in the development of digital content and technology-enabled adaptive learning solutions that are delivered anywhere, anytime,” according to the annual report. Higher Education accounts 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 the revenue models were increasingly shifted 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.

Return to the full listing of the world’s largest publishers.