Five months after pulling plans for an initial public offering, Beacon Education Management Inc., the charter school company founded here 10 years ago, has merged with another company and secured $26 million in funding.
Massachusetts-based Beacon merged last month with Chancellor Academies Inc. of Coconut Grove, Fla. The merged company, Chancellor Beacon Academies Inc., is now based in Coconut Grove. On Tuesday, Chancellor Beacon announced that a group led by Warburg Pincus and including Goldman Sachs Urban Investment Group and Zesinger Capital Growth has provided the new funding.
The combined company serves 19,000 students in 81 charter and private schools it manages. The company expects to generate $100 million in revenue this year, turn profitable in fiscal 2003, and then again consider an initial public offering, according to TheDeal.com.
Beacon was founded as Alternative Public Schools Inc. in Nashville in 1992 by local businessmen Bill DeLoache Jr. and John Eason. Even after the company moved to Westborough, Mass., and changed its name to Beacon, DeLoache remained chairman.
Research firm Eduventures estimates that the charter school industry generated $610 million of revenue in 2000, up 49%.