Superior Capital and Plymouth Venture Partners have made an investment in XanEdu Holdings, a publisher of digital and printed coursepacks to students at colleges and universities. The new investment will enable XanEdu to expand the capabilities of its Folio-X platform and accelerate its growth initiatives including new publisher partnerships, content development, and custom publishing editorial services.
Superior Capital’s investment in XanEdu Holdings is made through NAPC Holdings, a platform company formed by Superior in 2009 to acquire the business and assets of National Archive Publishing Company. NAPC Holdings is comprised of two business lines: XanEdu and NA Publishing, a provider of periodical microfilm for public and academic research libraries.
XanEdu is a custom publisher of digital and printed coursepacks to students at colleges and universities. The company was founded in 1999 to serve the emerging digital custom publishing marketplace. XanEdu’s course materials are used by more than 630,000 students at 1,000 institutions. The company was founded in 1999 and has nearly 100 employees. XanEdu is headquartered in Ann Arbor, MI with additional offices in Louisville, KY and Acton, MA (www.xanedu.com).
“This combined investment from Plymouth and Superior provides XanEdu with the resources to accelerate the transformation of XanEdu into a dynamic e-learning company. Education is becoming more portable, more dynamic and more engaging. Students are demanding mobility, interactivity, and currency. We have the resources in place to assist instructors, students, and institutions in accessing greater choices and in providing greater flexibility in their learning materials at a lower price point than traditional solutions,” said Alar Elken, CEO of XanEdu.
Superior Capital Partners invests in niche manufacturers, value-added distributors and specialty service companies with annual revenues between $10 million and $150 million. Superior will invest up to $15 million of equity per transaction to facilitate management buyouts, corporate spin-offs, recapitalizations, family successions, acquisitions out of bankruptcy and debt purchases. The firm is based in Detroit (www.superiorfund.com).
“We’re honored that Mark Horne, Ian Bund and the rest of the Plymouth team share our belief in the growth potential of XanEdu,” said Mark Carroll, Superior’s Managing Partner. “During Superior’s ownership period, the company has transformed from a traditional provider of mostly print-based coursepacks to a provider of a wide variety of custom-developed solutions that are now delivered via the Folio-X digital platform. Plymouth provides us with an investment partner with deep experience in accomplishing aggressive growth initiatives in a technology driven market.”
Plymouth Venture Partners invests from $1 million to $4 million in companies throughout the Great Lakes Region. The fund invests in revenue producing companies with the potential for significant growth through a defined, catalytic event or milestone. The firm is based in Ann Arbor, MI (www.plymouthvc.com).
“We’re excited to be partnering with Superior and the XanEdu team,” said Mark Horne, Plymouth’s Chief Executive Officer. “Our due diligence revealed the proven potential for XanEdu to expand its leading position in the higher education custom textbook and e-learning market. We’re confident that they have the right strategy and management team in place to continue delivering on its mission.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 4-15-13