In a statement, Apollo chief Greg Cappelli said the takeover will give his team "the flexibility and runway it needs to complete the transformational plan at University of Phoenix, which will enable us to serve our students more effectively during a period of unprecedented volatility within our industry".
The US for-profit education sector have faced tougher regulation since a series of government investigations in 2010 revealed low graduation rates and poor job prospects for students, who were also burdened with high debt.
On Monday, Apollo Education Group, the owner of University of Phoenix agreed to be bought by a group of investors for $1.1 billion.
The deal isn't final yet, pending approval by the Higher Learning Commission and Department of Education, but Apollo's board has signed off. Taking Apollo from a publicly traded company to a private one may help temper earnings expectations, according to the Washington Post. Each of Apollo Education Group's Class B stockholders has entered into an agreement to vote in favor of the transaction.
Apollo Education Group executive offices in Phoenix. The University of Phoenix segment provides undergraduate and graduate degrees in the areas of business, education, and nursing; and a range of non-degree education programs for lifelong learners and students. The acquisition is expected to be completed by Apollo Education Group's fiscal year-end, in August 2016. It operates through University of Phoenix, Apollo Global, and Other segments.
The U.S. Department of Education in the past years has tightened standards for the for-profit education industry, requiring the schools to demonstrate that graduates have found gainful employment that will allow them to pay off their student debt.
The press release says the Vistria Group is based in Chicago and is a "private investment firm focused on investing in middle-market companies in the health care, education and financial services sectors". And some non-profit colleges have started offering online programs, making the space more competitive. The offer given by Apollo Global Management seems like a win-win situation for Apollo Education management as well as students.
The move comes after 7 months positive chart setup for the $922.99M company.
Pope Meets Russian Orthodox Leader
Francis left after the meeting for a tour of Mexico, while Kirill continued a visit to Cuba, Brazil and Paraguay. There he will celebrate Mass and present a decree authorizing the use of indigenous languages in liturgy.