Apple Gains on Education Purchase
Apple shares rose on news that it will acquire PowerSchool, a Web-based educational company.
Apple Computer (Nasdaq: AAPL) rose 63 U.S. cents to $21.06 in morning trading Thursday after the Cupertino, California-based computer maker said it will buy PowerSchool, a Web-based educational company, for $62 million in stock.
Privately held PowerSchool makes student information systems for schools and school districts serving kindergarten through 12th grade. The company's products are being used by some 2,000 schools across the United States to help administrators and teachers manage students' records and let parents track their children's progress, Apple said.
Apple chief executive officer Steve Jobs said the acquisition reflects Apple's emphasis on using computers to bolster classroom learning. "We are now expanding that mission to include helping schools run more effectively," Jobs said.
PowerSchool, based in Folsom, California, has 160 employees, according to Apple.
Deal Awaits Approval
The acquisition is subject to approval by regulators and Apple shareholders.
Apple's latest quarterly report, for the quarter ended in December, showed the company had its first loss in three years as computer sales plunged. The company lost $195 million, or 58 cents per share, compared with net income of $183 million, or 51 cents, in the year-earlier quarter. Executives have said they expect a small profit for the current quarter, ending in March.
Apple executives in January were also upbeat about educational sales despite a shakeup in the division. Educational sales in the last quarter were said to be even with the year-earlier period.