Laureate Education, Inc. and Strategic Education, Inc. Enter into Definitive Agreement for Sale of Laureate’s Australian an...
July 29 2020 - 8:00AM
Laureate Education, Inc. (NASDAQ: LAUR) announced today that it has
entered into a definitive agreement with Strategic Education, Inc.
(NASDAQ: STRA) for the sale of its Australian and New Zealand
operations – Torrens University Australia and Think Education in
Australia and Media Design School in New Zealand.
The three operations have approximately 19,000 students enrolled
in technical, undergraduate and postgraduate programs in a variety
of academic disciplines, including Business, Education,
Hospitality, Design and Creative Technology, and Health. Torrens
University was founded by Laureate in 2014 and was the first new
university to open in Australia in 20 years. Think Education joined
Laureate in 2013, seven years after it was established. Media
Design School, founded in New Zealand 22 years ago, became part of
the Laureate network in 2011.
Strategic Education, Inc. is an established operator of
campus-based and online higher education institutions in the United
States, including Capella and Strayer Universities.
The purchase price is US$642.7 million and is subject to certain
closing adjustments based on the aggregate working capital and
indebtedness and on forecasted performance. Torrens University,
Think Education and Media Design School will remain part of the
Laureate International Universities network until the closing of
the transaction, which is expected to occur by the first quarter of
2021. It is subject to customary closing conditions, including
approval by relevant Australian and New Zealand authorities and a
mutual right of termination based on the occurrence of a material
adverse change in certain forecasted performance.
Commenting on the transaction, President and Chief Executive
Officer of Laureate, Eilif Serck-Hanssen said, “This transaction is
an outgrowth of the process Laureate initiated earlier this year to
explore strategic alternatives for each of its business units.
We’re incredibly proud of what our Australian and New Zealand teams
have achieved – from establishing Australia’s first new university
in two decades, to consistently delivering quality student learning
experiences with high employability outcomes. We have built a
highly efficient student centric culture focused on strong ties to
employers and community partners – and we have been rewarded with
robust growth and student loyalty. Under the stewardship of
Strategic Education, Inc., I’m confident that our institutions will
continue to be supported in delivering on their mission of
providing highly innovative programs with high student satisfaction
and strong outcomes.”
Karl McDonnell, Chief Executive Officer of Strategic Education,
Inc., said: “We’re excited to be expanding our business into the
Australian and New Zealand markets. We have been impressed by the
growth and impact the three Laureate institutions have made and
look forward to welcoming Torrens University, Think Education and
Media Design School into our network.”
Goldman Sachs & Co. LLC acted as the exclusive financial
advisor to Laureate, and Allens, DLA Piper New Zealand and Allen
& Overy acted as legal advisors.
Forward-Looking Statements
This press release includes certain disclosures that contain
“forward-looking statements” within the meaning of the U.S. federal
securities laws, which involve risks and uncertainties. You can
identify forward-looking statements because they often contain
words such as “subject to,” “expect” or similar expressions that
concern the planned transaction or the Company’s strategy, plans or
intentions. Any statement that we make relating to the closing of
the planned transaction described herein is a forward-looking
statement. Forward-looking statements are based on the Company’s
current expectations and assumptions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that may differ
materially from those contemplated by the forward-looking
statements, which are neither statements of historical fact nor
guarantees or assurances of future performance. These
uncertainties, risks and changes in circumstances include the risks
and uncertainties inherent in the transaction contemplated by the
purchase agreement and in our business, including, without
limitation: the occurrence of any event, change or other
circumstances that could give rise to the termination of such
transaction; the risk that the conditions to the closing are not
satisfied; and the risk that such transaction will not be
consummated within the expected time period or at all. Important
factors that could cause actual results to differ materially from
the Company’s expectations are set forth under the caption “Risk
Factors” in the Company’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2019, as updated in the Company’s Quarterly
Report on Form 10-Q for the quarter ended March 31, 2020.
About Laureate Education,
Inc.Laureate Education, Inc. has built the largest
international portfolio of degree-granting higher education
institutions, primarily focused in Latin America, with more than
850,000 students enrolled at over 25 institutions with more than
150 campuses, which we collectively refer to as the Laureate
International Universities network. Laureate offers high-quality,
undergraduate, graduate and specialized degree programs in a wide
range of academic disciplines that provide attractive employment
prospects. Laureate believes that when our students succeed,
countries prosper and societies benefit.
Investor Relations Contact:ir@laureate.net
Media Contact:Adam SmithLaureate
Education, Inc.adam.smith@laureate.netU.S.: +1 (443)
255 0724
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