Combination of two industry leaders with highly complementary capabilities brings the potential to transform the K-12 education experience for teachers and students
Boston and Portland, Ore.—Jan. 10, 2023—Learning technology company HMH and NWEA, a not-for-profit, research and educational services organization serving K-12 students, announced today they have signed an agreement for HMH to acquire NWEA. Upon closing, NWEA will operate as a division of HMH, with its current offerings, including its flagship assessment—MAP Growth—remaining under the NWEA brand. NWEA assessment solutions will be integrated with HMH curriculum on HMH’s platform to create a combined offering that links interim assessment to instruction. HMH is a portfolio company of Veritas Capital, a private investment firm that focuses on companies that provide technology and technology-enabled solutions to government and commercial customers worldwide.
By combining NWEA’s assessments with HMH’s curriculum, HMH is expected to deliver a holistic solution for educators that helps them understand how students are growing academically and what areas need the most focus to maximize that growth. Most importantly, this solution will turn insights from assessments into content recommendations that help teachers address student-specific skill gaps and advance student learning.
“We are thrilled at the potential this acquisition brings for K-12 educators, at a time when the connection between instruction and assessment is increasingly critical for student success,” said Jack Lynch, CEO of HMH. “HMH and NWEA have great alignment in mission and long-term vision and share the collective belief in the transformative power of education. Both teams are deeply focused on helping all children learn and serve millions of K-12 educators and students across the globe.”
“We’ve gone from serving three school districts 40 years ago to working with 10,000 school districts in 2022. This is the perfect time to look at where NWEA can go next to build on our reputation for quality and trust with the goal of amplifying our impact on student learning,” said Chris Minnich, CEO of NWEA. “When considering the right path forward, we kept our school district and state education partners at the center, with a focus on how we can deliver for them, especially in the areas they value. As part of HMH, we will be able to address their needs faster while staying focused on the deep, trusting relationships we have built with them.”
Following the close of the agreement, which is subject to customary regulatory review and anticipated to occur within a 90-day period, the NWEA name, brand and assessment and learning solutions will continue as part of HMH, and NWEA will have access to resources and capacity that will fuel its innovation and enable it to better serve educators and students.
The proceeds of the acquisition will be used in the near term to fund the continuation of a not-for-profit focused on helping all children learn and achieve their full potential, with plans to eventually convert to a private foundation.
“We’re incredibly enthusiastic for this opportunity and that the proceeds will go toward establishing an education foundation that invests in new frontiers of learning aimed at helping all kids learn,” said Mark Strickland, Board Chair of the NWEA Board of Directors. “Additionally, we congratulate HMH and NWEA on this partnership, recognizing this as a way to accelerate the mission of both organizations, ultimately benefiting educators they serve today and in the future.”
NWEA partners can learn more about this agreement at nwea.org/news-center/.
Goldman Sachs & Co. LLC acted as exclusive financial advisor to NWEA, and Hogan Lovells US LLP served as the Company’s legal advisor. Davis Wright Tremaine LLP also acted as legal advisor to NWEA. Milbank LLP acted as HMH’s legal advisor in connection with the transaction.
About HMH
Houghton Mifflin Harcourt (HMH) is a learning technology company committed to delivering connected solutions that engage learners, empower educators and improve student outcomes. As a leading provider of K–12 core curriculum, supplemental and intervention solutions, and professional learning services, HMH partners with educators and school districts to uncover solutions that unlock students’ potential and extend teachers’ capabilities. HMH serves more than 50 million students and 4 million educators in 150 countries. For more information, visit www.hmhco.com
About NWEA
NWEA® (formerly known as Northwest Evaluation Association) is a mission-driven, not-for-profit organization that supports students and educators in more than 146 countries through research, assessment solutions, policy and advocacy services, professional learning and school improvement services that fight for equity, drive classroom impact and push for systemic change in our educational communities. Visit NWEA.org to learn more about how we’re partnering with educators to help all kids learn.
About Veritas Capital
Veritas Capital (Veritas) is a longstanding technology investor with over $40 billion of assets under management and a focus on companies operating at the intersection of technology and government. The firm invests in companies that provide critical products, software, and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means. Leveraging technology to make a positive impact across vitally important areas, such as healthcare, education, and national security, is core to the firm. Veritas is a proud steward of national assets, improving the quality of healthcare while reducing cost, advancing our educational system, and protecting our nation and allies. For more information, visit www.veritascapital.com.
Contacts:
Bianca Olson
SVP, Corporate Affairs, HMH
bianca.olson@hmhco.com
617.351.3841
Simona Beattie
Sr. Manager, Public Relations, NWEA
simona.beattie@nwea.org
971.361.9526
Veritas
FGS Global
VeritasCapital@fgsglobal.comg