Deals
Apollo Education to Be Taken Private in $1.1 Billion Deal
- Private equity group pays 44 percent premium for company
- For-profit education sector is under regulatory pressure
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Apollo Global Management and other investors agreed to buy Apollo Education Group Inc., owner of the University of Phoenix, as for-profit schools struggle to win back the trust of students and regulators after an industry scandal uncovered examples of high tuition and paltry results.
The buyers, which also include funds affiliated with Chicago-based Vistria Group and Jahm Najafi’s private investment firm Najafi Cos., will pay $1.1 billion in cash, or $9.50 for both Class A and Class B shares, and take the company private, Phoenix-based Apollo Education said in a statement Monday.