Apollo Global Management Inc. will purchase $500 million of a new series of convertible preferred stock of Cengage Group, a Boston-based global edtech company, through funds managed by affiliates of Apollo.

The transaction is expected to close by June 30, 2023.

Cengage is an edtech portfolio company that supports students from middle school through graduate school and skills education, with content and technology. With the investment, Cengage will continue to focus on Education for Employment by investing in products and services to help students use education to gain the skills and competencies to be job ready.

“By replacing debt with equity capital from Apollo Funds, we are meaningfully reducing outstanding debt giving us optionality to invest in our portfolio of growing businesses.” said Michael E. Hansen, CEO, Cengage Group.

Recent acquisitions by Cengage Group include Infosec, a provider of cybersecurity education and training, and launched Ready to Hire, a new solution to close skilled labor gaps and expand access to quality training.

Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Cengage Group. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to the Apollo Funds.