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L Squared recapitalises Heggerty

L Squared Capital Partners (L Squared) is leading the recapitalisation of Literacy Resources, d/b/a Heggerty, an early childhood literacy solutions provider offering a suite of phonemic and phonological awareness solutions.

Heggerty’s product offering is anchored by its daily systematic phonemic and phonological awareness curriculum delivered in print and digital modalities that are used by more than 250,000 educators spanning from early pre-K to fifth grade. Heggerty has supplemented its foundational curriculum offering with a growing suite of solutions, including digital video content, digital assessment and screening tools, intervention curriculum, and decodable readers. Heggerty’s products are supported by professional development services and implementation support delivered by literacy specialists that embody Heggerty’s mission: to equip teachers with effective and engaging products and professional learning opportunities that help prepare and empower all students to become lifelong readers.

“Heggerty has differentiated itself by offering efficacious and engaging literacy solutions to the marketplace,” says Randall Hunt, Partner at L Squared. “The affinity with educators – both teachers and administrators – speaks volumes about Heggerty’s unique ability to address one of the largest challenges facing the education sector today.”

Joining Heggerty’s Board of Advisors are long-time L Squared executive partners, Ron Davies and Kai-lee Berke. Ron and Kai-lee bring decades of experience in the early education sector and will assist the Heggerty leadership team with ongoing product development as well as sales and marketing initiatives.

“I’m thrilled to partner with L Squared to accelerate Heggerty’s mission,” says Andrew Follett, Heggerty’s CEO. “The L Squared team brings a long track record of success in the education sector and together we’re committed to maximizing the impact that Heggerty will have on student reading proficiency in North America and beyond.”

L Squared Capital Partners, Longview Asset Management, and the existing Heggerty shareholders – Pondera Holdings and Heggerty’s executive team – contributed equity for the transaction. BMO Sponsor Finance and New Canaan Funding led the debt financing to support the recapitalisation. William Blair served as an advisor to L Squared and White & Case LLP served as legal counsel. Macquarie Capital advised Heggerty on the transaction and Reed Smith LLP served as legal counsel. The L Squared deal team was composed of Randall Hunt, Jeff Farrero, Tyler Huez, and Edmund Montanari.

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