Edison Schools to Become Private Firm

Edison Schools Inc., the largest for-profit public-school manager, will go private after raising more than $500 million from investors and running up losses of $354 million, Chief Executive Christopher Whittle said.

Edison agreed to be acquired for $1.76 a share in cash by a company formed by Whittle and Liberty Partners, a private equity firm. Edison, with a market value of about $90 million, said the purchase totaled $174 million, including the assumption or refinancing of debt.

Edison shares rose 7 cents, or 4.5%, to $1.63 on Nasdaq.