Apollo Education Group (NASDAQ:APOL) is to be taken private by a consortium in a $1.1bn deal worth $9.50 a share to investors.
The company, one of the world’s largest private education providers, has entered into a definitive agreement to be acquired by a consortium of investors including The Vistria Group, funds affiliated with Apollo Global Management (NYSE:APO), and Najafi Companies.
The $9.50 per share in cash for both Class A and B shares represents a handsome premium of 30% over Apollo Education Group’s 30-day volume weighted average stock price for the period ended 5 February, and a 44% premium over the closing price on 8 January, the last trading day before the group effectively put itself up for sale.
Apollo's shares closed at $6.95 on Friday.
Tony Miller, chief operating officer and partner of The Vistria Group, who is a former deputy secretary of the US Department of Education, will become chairman of the Apollo Education Group Board when the takeover completes.
Greg Cappelli, chief executive officer of Apollo Education Group, said the board had reviewed its strategic options and had plumped for this one as the best on offer.
“This new structure will allow Apollo Education Group 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. We will also continue to expand our international operations and remain committed to driving principles of operating excellence,” Cappelli said.