Renaissance Learning, Inc.

Judi and Terry Paul, the founders and principal owners of Renaissance Learning (“RLRN”), were vocal in their objections of the potential sale of RLRN to Plato Learning, Inc. (“Plato”). A bidding war had erupted between Plato and Permira Advisers (“Permira”) in response to the announcement on August 15, 2011 that Permira had made an offer to purchase RLRN. On September 10th, 2011, RLRN announced that a special meeting of RLRN’s board of directors had been scheduled for Monday, October 17th to vote on the most recent offer from Permira. This announcement resulted in a bid by Plato on October 7th that could have provided a higher price to both the Pauls and the minority shareholders of RLRN than the bid made by Permira. Over the weekend of October 8th and 9th , 2011, Permira Advisers (“Permira”) received a request by Renaissance Learning, Inc. (“RLRN”) to increase the previous bid that Permira had made to purchase RLRN. The request was potentially made to forestall litigation against RLRN by some of its minority shareholders for not accepting Plato’s higher offer. Representatives from Permira informed RLRN that they would need authorization from Permira’s investment committee to accept the increase and that they would meet with the investment committee on Monday, October 10th to discuss the offer (Renaissance Learning, 2011c).