Plato Learning to buy Archipelago for $291M

Plato Learning is buying Archipelago Learning Inc., which sells subscriptions to the online test-prep service Study Island, for about $291 million in cash as the education software maker seeks to boost its product lineup and grow its customers, CBS News reports. The $11.10 per share offer is a 23 percent premium over Archipelago’s March 2 closing stock price of $9.04. The news sent Archipelago shares up $1.96, or 22 percent, to $11 in premarket trading March 5. Once the deal closes, Plato’s customer base will include more than 50,000 schools and 17 million prekindergarten through adult students, Archipelago said. Archipelago’s board approved the sale and recommended that shareholders do so as well. The sale is also subject to regulatory approval.

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