Two Major For-Profit Colleges Are Merging in a $1.9 Billion Deal
Mon Oct 30 2017
Mark Cooper (1809 articles)

Two Major For-Profit Colleges Are Merging in a $1.9 Billion Deal

The combined for-profit education company will serve about 80,000 students.

Strayer Education will merge with smaller peer Capella Education in a $ 1.9 billion all-stock deal that will offer doctoral, master’s and bachelor’s programs, mainly for working adults across the United States.

Strayer shareholders will own about 52% of the combined company, and Capella shareholders will own about 48%, the companies said on Monday.

The combined for-profit education company will serve about 80,000 students.

Read: Education Secretary Betsy Devos Discusses U.S. Educational Issues

For-profit colleges such as Herndon, Virginia-based Strayer have struggled to grow student enrollments in recent years after tough U.S. rules on student debt forced them to tighten admission standards.

Strayer stra , which had a market value of about $ 1.02 billion as of Friday, offers working adults programs in accounting, business administration, information technology and criminal justice. It had 45,509 students enrolled in its programs for the 2016 fall term.

Minneapolis-based Capella Education cpla had a market capitalization of about $ 764.5 million as of Friday. It provides doctoral, master’s and bachelor’s programs, primarily for working adults.

Mark Cooper

Mark Cooper

Mark Cooper is Political / Stock Market Correspondent. He has been covering Global Stock Markets for more than 6 years.

Discussion

Rules of Discussion on Live Index

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.