A virtual public school system opetrator called K12 Inc. has filed to come public via an IPO. K12 has taken the proposed ticker of "LRN" on the NYSE. The joint underwriters in the deal are listed as Morgan Stanley and Credit Suisse.
K12 is a technology-based education company that offers proprietary curriculum, software and educational services created for online delivery to students in kindergarten through 12th grade. Its intent is providing access to an engaging and effective education, regardless of geographic location or socio-economic background. Since inception, K12 has invested more than $95 million to develop curriculum and an online learning platform that promotes mastering core concepts and skills for students of all abilities. They combine cognitive research-based curriculum with an individualized learning approach well-suited for a virtual school. From fiscal year 2004 to fiscal year 2007, it says that it increased average enrollments in the virtual public schools it serves from approximately 11,000 students to 27,000 students. From fiscal year 2004 to fiscal year 2006, it also says it increased revenues from $71.4 million to $116.9 million, representing a compound annual growth rate of approximately 28%.
The real difference here between K12 and some of the other online education plays is that these are virtual public schools. So these schools must meet state educational standards, administer proctored exams and are subject to fiscal oversight. Its students attend virtual public schools primarily over the Internet instead of traveling to a physical classroom. In their online learning environment, students receive assignments, complete lessons, and obtain instruction from certified teachers with whom they interact online, telephonically, and face-to-face.
More data can be found at the www.k12.com website. Hopefully this skool kan deel with the dumm kids in the No Child Left Behind program that end up holding back the entire class in the public school system. Of course, it means they’ll have to be able to operate a computer.
Jon C. Ogg
July 27, 2007
Jon Ogg can be reached at email@example.com; he does not own securities in the companies he covers.