On October 20, 2006, Kaplan, the test-prep giant, announced that it had acquired PMBR, a provider of classes for the Multistate Bar Exam (MBE).
As reported earlier in this blog, a court hit PMBR in August with a $12 million judgment in a copyright case brought by the National Conference of Bar Examiners (NCBE). It should be expected that PMBR will appeal the judgment. A potential liabiity of $12 million, however, is sufficient to make a privately-held company like PMBR look around for a purchaser.
Kaplan, which is owned by the Washington Post Company, is an ideal acquiring company for PMBR. PMBR is also an ideal acquisition for Kaplan, which has long sought to expand its role in preparation for the bar exam. Note that Kaplan says it is "acquiring" PMBR, not that it is buying PMBR. One assumes, therefore, that the terms of the Kaplan-PMBR deal are complex, and that Kaplan is not just writing a check to PMBR and buying the company.
Following is the Kaplan press release about its acquisition of PMBR:
Kaplan Acquires PMBR, Nationwide Provider of Test Prep for Multistate Bar Examination
NEW YORK--(BUSINESS WIRE)--Kaplan, the international education firm, announced today that it has acquired PMBR, a nationwide provider of test preparation for the multistate bar examination (MBE). The price of the transaction was not disclosed.
PMBR, headquartered in Santa Monica, CA, provides test prep courses, tutorials and workshops for the MBE, a uniform national 200 question multiple-choice exam that is one of the primary parts of nearly all state bar examinations.
Kaplan Test Prep and Admissions is the leading nationwide provider of preparation for university and graduate admissions exams, ranging from the SAT to the Graduate Management Admissions Test (GMAT), as well as for professional licensing exams such as the U.S. Medical Licensing Exam (USMLE). Kaplan is also the largest provider of preparation for the Law School Admissions Test (LSAT).
John Polstein, CEO, Kaplan Test Prep and Admissions, said, "Given our successful track record of providing high quality test preparation for high-stakes exams, it makes sense for us to expand our expertise into this area. We're pleased to be doing so with such a strong provider as PMBR, which has its own rich history in preparing students for the bar exam."
PMBR CEO Robert Feinberg said, "Joining Kaplan, the premier brand in test prep, will benefit our students tremendously. PMBR will become part of a global network, with industry-leading resources and expertise in product technology, marketing and customer service support."
The MBE covers six subject areas ? Contracts, Torts, Constitutional Law, Criminal Law, Evidence, and Real Property. More than 30,000 students a year prepare for this test with PMBR, which also has offices in Philadelphia and New York City.
Kaplan has more than 160 centers and 4,000 classroom locations worldwide.
Kaplan Test Prep and Admissions prepares 280,000 students for standardized tests annually, from the SAT and ACT for university admission to the Graduate Record Exam (GRE), the LSAT, and GMAT. In addition to preparing foreign medical graduates for the USMLE (required for doctors educated outside the U.S. to practice in the U.S.), Kaplan's professional licensing preparation includes the NCLEX (for registered and practical nurses).
Kaplan's other ventures in legal education include Concord Law School, the nation?s first completely online law school, along with Holborn College, an independent school of business and law in London. In June 2006 Kaplan announced that it had reached agreement with Nottingham Law School in the U.K. to open Nottingham at Kaplan Law School, a London facility that will provide legal training for university graduates seeking employment as solicitors.
Over the past several years, Kaplan's test prep division has expanded into new areas including admissions consulting and online programs, educational services to K-12 schools, book and software publishing, English language programs and international test preparation overseas. Last week, the company announced that it acquired Aspect Education, a U.K.-based provider of English language programs worldwide.
About Kaplan Test Prep and Admissions
Kaplan Test Prep and Admissions (www.kaptest.com), a division of Kaplan, Inc., is a premier provider of educational and career services for individuals, schools and businesses. Established in 1938, Kaplan is the world leader in the test prep industry. With 4,000 classroom locations worldwide, a comprehensive menu of online offerings and a complete array of books and software, Kaplan offers preparation for more than 80 standardized tests, including entrance exams for secondary school, college and graduate school, as well as English language and professional licensing exams. Kaplan also provides private tutoring and college and graduate admissions consulting services, as well as after school tutoring through its SCORE! centers. Additionally, the division?s K12 Learning Services unit is a leading nationwide provider of a broad range of academic intervention and support programs for school districts.
Kaplan, Inc. (www.kaplan.com) is a leading international provider of educational and career services for individuals, schools and businesses and offers services in four major areas: Kaplan Kids and Schools, Kaplan Test Prep and Admissions, Kaplan Higher Education and Kaplan Professional. Kaplan, which had 2005 revenue of more than $1.4 billion, is a subsidiary of The Washington Post Company (NYSE: WPO).
About PMBR
Founded in 1977, PMBR is a leading provider of review courses to law students preparing for the Multistate Bar Examination (MBE) section of the bar exam. PMBR is the most comprehensive and largest provider of test preparation courses, texts and software serving the MBE, and serves all 50 states.
Note to editors: Kaplan is a subsidiary of The Washington Post Company (NYSE: WPO)
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