Perdoceo Education Acquiring University of St. Augustine for Health Sciences

By Tamara Parker • Tuesday, July 16 15:13 • Permanent Link

Perdoceo Education Corporation has recently announced its definitive agreement to acquire 100% ownership of the University of St. Augustine for Health Sciences, LLC (USAHS). The transaction is expected to be completed in December 2024 and is subject to customary closing conditions and regulatory approvals.

The acquisition is valued at approximately $142 million to $144 million in cash at closing, with the actual amount depending on adjustments for cash, debt, and working capital based on the final closing balance sheet. For the year ended December 31, 2023, USAHS reported revenues of approximately $170 million and operating income of approximately $35 million, serving approximately 4,500 graduate and post-graduate students across multiple health sciences disciplines.

Perdoceo expects the acquisition to be accretive to the company’s adjusted operating income immediately beginning in 2025 and to provide further growth in adjusted operating income in 2026. This acquisition aligns with Perdoceo’s balanced capital allocation strategy of acquiring quality academic institutions that are accretive acquisitions while also returning capital to shareholders via dividends and share buybacks.

Additionally, Perdoceo affirmed its outlook for fiscal year 2024, remaining on track to achieve its full-year adjusted operating income outlook of $175 million to $190 million. This outlook was previously provided in the company’s quarterly earnings release.

Perdoceo Education Corporation, a provider of postsecondary education, offers accredited academic institutions that primarily provide quality postsecondary education online to a diverse student population, along with campus-based and blended learning programs. Their academic institutions, including Colorado Technical University and the American Intercontinental University system, offer degree programs from the associate through doctoral level, as well as non-degree seeking and professional development programs. These institutions offer industry-relevant and career-focused academic programs designed to meet the educational needs of today’s busy adults. Today the company's shares have moved 5.8% to a price of $23.28. If you want to know more, read the company's complete 8-K report here.

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