McGraw-Hill Cos. completed the sale of its education unit to Apollo Global Management LLC for $2.4 billion in cash.

Some of the proceeds from the transaction will fund share buybacks, the New York-based firm said in a statement distributed by PRNewswire. The remaining company, to be renamed McGraw Hill Financial Inc., is also using part of the $1.9 billion it will receive after tax to pay down short-term debt and the rest may pay for “selective tuck-in acquisitions,” according to the statement.

Chief Executive Officer Harold “Terry” McGraw III decided in September 2011 to sell the education division, which his great-grandfather started 125 years ago, after pressure from Jana Partners LLC, a New York-based hedge fund, and the Ontario Teachers’ Pension Plan.

The U.S. Department of Justice sued the company Feb. 4, alleging that its Standard & Poor’s ratings unit inflated grades to win business from Wall Street banks. S&P will be at the center of the new company, accounting for about half its revenue, according to data compiled by Bloomberg.