McGraw Hill Acquires AI Lesson-Planning Startup Teachally

McGraw Hill has acquired Teachally, a small artificial intelligence startup that helps teachers create and customize lesson plans, assignments, and assessments aligned to state education standards.

The education publishing giant announced the deal Wednesday, bringing aboard all five employees of the Bothell, Washington-based company. Financial terms were not disclosed, though founder Daniel Bernstein said the outcome was positive for the company and its angel investors.

Bernstein, a veteran of the Seattle tech scene, founded casual gaming studio Sandlot Games in 2002 and sold it to Digital Chocolate in 2011 after developing hits like "Cake Mania" and "Tradewinds." He spent the past decade as a software M&A advisor at Corum Group and later at his own firm, Hemisphere Partners, which handled Teachally's sale process.

From digital stickers to AI curriculum

Teachally originally launched as EZ Reward, maker of a digital sticker chart app called EZ Stickerbook that teachers used to reward students and communicate with parents. Bernstein pivoted the company roughly three years ago to focus on AI tools for educators.

The startup targets what the education industry calls high-quality instructional materials (HQIM) — standards-aligned curriculum that many states and districts now require schools to adopt. Rather than building tools for students, Teachally focuses on helping teachers develop better instructional content.

At the time of acquisition, Teachally was working with approximately eight school districts and had been recognized as a top edtech product for curriculum and instruction by District Administration magazine in January. The five-person team spans three continents, with members in the Seattle area, Melbourne, Arizona, and Ethiopia.

Why it matters

McGraw Hill's acquisition reflects growing demand for AI tools that support educators rather than replace them. As states and districts push for standards-aligned curriculum, publishers need faster ways to develop and localize content. For McGraw Hill — which went public last year and reported $2.1 billion in revenue in its most recent fiscal year — the deal provides immediate AI capabilities for teachers already using its materials. The transaction also demonstrates that even small, early-stage edtech companies can achieve strategic exits when they solve specific problems for large incumbent players.

Strategic fit for McGraw Hill

Jana Thompson, interim president of McGraw Hill's School group, said the acquisition will accelerate the company's AI strategy in ways that directly support educators and strengthen how it develops and delivers K-12 products globally.

Teachally is now live as a McGraw Hill product with its own dedicated page on the company's website. Bernstein has joined McGraw Hill as senior advisor for Teachally integration and growth.

Bernstein said he had to learn an entirely new industry after two decades in gaming, though his M&A work helped — he had taken other edtech companies to market before building his own. The deal marks a second exit for Bernstein and some of the angels who backed him previously.

The details were first reported by GeekWire.