Princeton Review Inc. is selling its test preparation business for $33 million in cash to a private equity group and plans to change its name as it focuses on its Penn Foster online education division.
The Massachusetts-based company is best known for the test preparation materials that it sells under the Princeton Review brand which is also being sold as part of the deal to an affiliate of the private equity firm Charlesbank Capital Partners.
The company's test prep business has struggled as customers are opting for less expensive SAT-preparation programs.
The deal announced Tuesday is expected to close within 30 to 45 days.
Princeton Review said the sale will help it expand its Penn Foster division, which provides online degrees and vocational programs in fields like health care, technology and education. It will adopt a new name, as yet undetermined.
Princeton Review said it will adopt a new name, which is yet to be determined, as it becomes a holding company for the Penn Foster division.
Its stock, which has lost half its value over the past year, edged up 2 cents to 14 cents per share in midday trading Tuesday. It has traded in a range of 7 cents to 48 cents over the past year. As recently as 2009, it traded above $4.50