Sylvan Learning Systems Inc. announced yesterday that it plans an estimated $50 million secondary offering of common stock to help it expand.
The Columbia-based tutoring and computerized educational testing company said it has filed a registration with the Securities and Exchange Commission to sell 2.1 million shares of its common stock.
Sylvan said the proceeds of the stock sale will be used to finance the $20 million cash portion of its purchase of Drake Prometric L.P., a privately held competitor in the field of computerized testing.
On July 21, Sylvan disclosed that it would acquire the Bloomington, Minn.-based company for cash and stock worth up to $140 million.
Sylvan said that money raised by the offering in excess of $20 million would be used for general purposes and to help the company expand.
Most of the company's top officials were in Vancouver, British Columbia, for a conference yesterday and could not be reached to comment.
Sylvan stock closed yesterday at $25.25, down $1.