After nearly 22 years as a publicly traded company, shareholders of the parent to the University of Phoenix approved a $1.14 billion sale that will see the for-profit school taken over by a consortium of investors, including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC (NYSE: APO) and the Najafi Companies.
More than 63 percent of the Class A shares voted at Apollo Education Group’s Special Meeting of Shareholders recently voted in favor of the transaction, representing approximately 54 percent of all outstanding Class A shares. One hundred percent of Class B shares voted in favor of the proposals. At completion of the merger, Apollo Education Group shareholders will receive $10.00 per share in cash.
“We appreciate the support from our shareholders in approving this transaction,” said Greg Cappelli, Chief Executive Officer of Apollo Education Group.
“This has been a robust process in which our Board of Directors reviewed many strategic alternatives and found this transaction to be in the best interest of all stakeholders. We believe this new ownership structure will allow Apollo Education Group to continue to transform University of Phoenix, further expand our global operations, drive operational efficiency and serve as the leading provider of high quality education for working adults,” he added.
Tony Miller, Partner at The Vistria Group who will become Chairman of the Apollo Education Group upon transaction close, said, “We are committed to making University of Phoenix the most trusted provider of career-relevant higher education for working adults in the country. We have a vision for how to dramatically improve student outcomes, while addressing the concerns from critics of the for-profit education industry. It remains our belief that success is rooted in graduating students with the knowledge and skills that employers need, in an affordable way that ensures a compelling return on their educational investment.”
The transaction is subject to financial, operational, and customary closing conditions. It is also subject to foreign and domestic regulatory conditions and approvals, including by the U.S. Department of Education, the Higher Learning Commission, and state regulatory and programmatic accreditation bodies. The acquisition is expected to be completed by year-end 2016.
Yvad Billings, Readers Bureau, Fellow
Edited by Jesus Chan
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