McGraw-Hill Markets will retain the Standard & Poor's credit rating company as well as the market research firm JD Power and Associates.
McGraw-Hill Education will be a new company focused on education services and digital learning, while McGraw-Hill Markets will retain S&P and J.D. Power and Associates, a market research company.
The markets business expects 2011 revenue of about $4 billion, with almost 40 percent of it from international markets. The education segment is forecasting revenue of about $2.4 billion for the year.
The company said the split will create more "sharply defined," focused companies that will make it easier for investors to assess their value.
McGraw-Hill's current president and CEO will lead the markets business. A search is underway for a person to lead the education business.
The Associated Press contributed to this story.