Strategic Education, Inc. (Strategic Education) (NASDAQ: STRA)
today announced that it has entered into a definitive agreement
with Laureate Education, Inc. (Laureate) (NASDAQ: LAUR) to acquire
Laureate’s Australia and New Zealand academic operations. The
all-cash transaction is valued at $642.7 million, subject to
potential adjustments, and has been unanimously approved by the
Boards of Directors of both companies.
Laureate’s Australia and New Zealand portfolio includes the
highly regarded Torrens University Australia, one of only 43
institutions in Australia which hold that nation’s highest
University academic designation and accreditation. Torrens
University is uniquely positioned as the only investor funded
University among Australia’s 43 Universities.
With the addition of Laureate’s Australia and New Zealand
portfolio, Strategic Education will expand operations outside of
the U.S. to an attractive, growing higher education market in the
Asia Pacific region. Laureate’s Australia and New Zealand portfolio
includes Torrens University Australia, Think Education, and Media
Design School, which together provide diversified student curricula
to 19,000+ students across five industry verticals, including
business, hospitality, health, education, creative technology and
design. Following the transaction, Strategic Education will serve
nearly 110,000 students online and at over 85 campuses in the
United States, Australia, and New Zealand.
The transaction diversifies Strategic Education’s offerings and
revenue outside of the U.S., provides a new opportunity to leverage
Strategic Education’s unrivaled capabilities delivering education
services in a digital environment, and enhances the company’s
position as a global leader in post-secondary education.
Robert S. Silberman, Executive Chairman of Strategic Education
said, “We have long been admirers of Laureate’s Australia and New
Zealand educational portfolio, and feel very fortunate to assume
the stewardship of these highly regarded academic institutions. We
look forward to supporting these enterprises, and helping their
students, faculty, and alumni to achieve their educational
objectives. These institutions, which are located in very
attractive markets for us, will be worthy additions to our current
portfolio of Strayer University and Capella University.”
Karl McDonnell, Chief Executive Officer of Strategic Education
said, “We are delighted to welcome Torrens University Australia,
Think Education, and Media Design School into the Strategic
Education family. By combining our expertise in digital education
with Australia’s only investor funded University, we will create a
formidable growth platform that will enable us to pursue our
mission of enabling economic mobility throughout the Oceania and
Asian regions. We are additionally pleased that this transaction
will be immediately, and significantly, accretive to Strategic
Education earnings.”
Eilif Serck-Hanssen, President and Chief Executive Officer of
Laureate said “We are incredibly proud of what Torrens University
Australia, Think Education, and Media Design School have achieved
and feel a strong alignment in values with Strategic Education,
particularly with regard to promoting economic mobility,
innovation, and quality outcomes for students. We look forward to
seeing these institutions continue their great work under the
stewardship of Strategic Education.”
The transaction is subject to the satisfaction of certain
customary closing conditions and regulatory approvals, and is
expected to close by the first quarter of 2021. The Company has
received commitments from SunTrust and Bank of America to expand
the Company’s existing revolving credit facility from $250 million
to $350 million coinciding with the close of the transaction.
BofA Securities acted as financial advisor to Strategic
Education in this transaction, and Hogan Lovells acted as legal
advisor.
More information about this acquisition will be shared during
Strategic Education’s second quarter 2020 earnings call today at
10:00 a.m. (ET). To participate in the live call, investors should
dial (877) 303-9047 ten minutes prior to the start time. In
addition, the call will be available via webcast. To access the
live webcast of the conference call, please go to
www.strategiceducation.com in the Investor Relations section 15
minutes prior to the start time of the call to register. An
earnings release presentation will also be posted to
www.strategiceducation.com in the Investor Relations section prior
to the start time of the call. Following the call, the webcast will
be archived and available at www.strategiceducation.com in the
Investor Relations section.
About Strategic Education
Strategic Education (NASDAQ: STRA) (www.strategiceducation.com)
is dedicated to enabling economic mobility with education. We serve
working adult students through a range of educational opportunities
that include: Strayer University and Capella University (separate
institutions that are each regionally accredited), which
collectively offer flexible and affordable associate, bachelor’s,
master’s, and doctoral programs; a Top-25 Princeton Review-ranked
online MBA program through the Jack Welch Management Institute at
Strayer University; self-paced courses for college credit through
Sophia; customized degrees for corporations through Degrees@Work;
and non-degree web and mobile application development courses
through DevMountain, Generation Code, and Hackbright Academy. These
programs help our students prepare for success in today’s jobs and
find a path to bettering their lives.
Forward-Looking Statements
This communication contains certain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements may be identified by the use of words such
as “expect,” “estimate,” “assume,” “believe,” “anticipate,” “may,”
“will,” “forecast,” “outlook,” “plan,” “project,” “potential” and
other similar words, and include all statements that are not
historical facts, including with respect to, among other things,
the final terms and timing of Strategic Education’s acquisition of
Laureate’s Australia and New Zealand business; the potential
benefits of the acquisition; Strategic Education’s plans to finance
the acquisition; future financial performance of Strategic
Education; Strategic Education’s plans, strategies and prospects;
and future events and expectations. The statements are based on
Strategic Education’s current expectations and are subject to a
number of assumptions, uncertainties and risks, including but not
limited to:
- Strategic Education’s continued compliance with Title IV of the
Higher Education Act, and the regulations thereunder, as well as
regional accreditation standards and state regulatory
requirements;
- rulemaking by the Department of Education and increased focus
by the U.S. Congress on for-profit education institutions;
- the pace of student enrollment;
- competitive factors;
- risks associated with the further spread of COVID-19, including
the ultimate impact of COVID-19 on people and economies;
- the impact of regulatory measures or voluntary actions that may
be put in place to limit the spread of COVID-19, including
restrictions on business operations or social distancing
requirements;
- risks associated with the opening of new campuses;
- risks associated with the offering of new educational programs
and adapting to other changes;
- risks associated with the acquisition of existing educational
institutions, including in the case of Strategic Education’s
proposed acquisition of Laureate’s Australia and New Zealand , the
risk that theacquisition may not be completed in a timely manner or
at all, the risk that the benefits of the acquisition may not be
fully realized or may take longer to realize than expected, and the
risk that the acquisition may not advance Strategic Education’s
business strategy and growth strategy;
- risks relating to the timing of regulatory approvals;
- Strategic Education’s ability to implement its growth
strategy;
- the risk that the combined company may experience difficulty
integrating employees or operations;
- risks associated with the ability of Strategic Education’s
students to finance their education in a timely manner;
- general economic and market conditions; and
- additional factors described in Strategic Education’s most
recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K.
Many of these risks, uncertainties and assumptions are beyond
Strategic Education’s ability to control or predict. Because of
these risks, uncertainties and assumptions, you should not place
undue reliance on these forward-looking statements. Furthermore,
these forward-looking statements speak only as of the information
currently available to Strategic Education on the date they are
made, and Strategic Education undertakes no obligation to update or
revise forward-looking statements, except as required by law.
Actual results may differ materially from those projected in the
forward-looking statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200729005293/en/
Investors Terese Wilke Manager, Investor Relations
Strategic Education, Inc. (612) 977-6331
terese.wilke@strategiced.com
Media Colleen Kincaid Vice President, Public Relations
and Communications Strategic Education, Inc. (202) 875-1269
colleen.kincaid@strategiced.com
Strategic Education (NASDAQ:STRA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Strategic Education (NASDAQ:STRA)
Historical Stock Chart
From Apr 2023 to Apr 2024