Investment and Acquisition
|
9 Months Ended |
---|---|
Mar. 31, 2013
|
|
Investment and Acquisition | |
Investment and Acquisition | 10. Investment and Acquisition
Investment in Web International Education Group Ltd. (Web)
In January 2011, the Company invested $10.0 million to obtain a 20% minority interest in Web, a provider of English language learning centers in cities throughout China. The Company’s option to purchase no less than 51% of Web expired on March 31, 2013. The Company has the right to put its investment back to Web through September 30, 2014 for return of its original $10 million investment plus interest of 8% . The Company recorded its investment in Web as an available for sale debt security because of the ability to put the investment to other Web shareholders in return for the original $10.0 million investment plus interest. There has been no change to the fair value of the Web investment based on Web’s financial performance since the initial investment and Web’s ability to repay the investment plus interest with cash.
Acquisition of Kaplan/Insight Assets from Kaplan Virtual Education and Insight Schools, Inc.
On July 1, 2011, the Company acquired the Kaplan/Insight Assets for $12.6 million. The Kaplan/Insight Assets included contracts to serve nine virtual public charter schools throughout the United States. These schools have been integrated into the Company’s existing operations. The acquisition of the Kaplan/Insight Assets had an immaterial proforma impact on the results of operations for the three and nine months ended March 31, 2012. The majority of the purchase price has been allocated to goodwill and intangible assets for $6.0 million and $4.3 million, respectively. The purchase price allocation was finalized as of September 30, 2012.
|