NEW YORK (AP) — McGraw-Hill is selling its education business to private equity firm Apollo Global Management for $2.5 billion.

As part of the deal, McGraw-Hill will get $250 million in senior debt issued by Apollo at an annual interest rate of 8.5 percent.

The sale is expected to close in late 2012 or early 2013. At that time, The McGraw-Hill Cos. will be renamed McGraw Hill Financial. It expects 2012 revenue of about $4.4 billion. Apollo will get its digital and traditional textbook business and other assets.

McGraw-Hill says the sale will allow it to focus on growing brands like Standard & Poor's, S&P Capital IQ and J.D. Power and Associates.

The company plans to use the proceeds from the sale to fund its stock buyback program, make acquisitions and pay off debt.