U. of Phoenix Goes Private, Sold for $1.1 Billion

The Apollo Education Group, parent company of the University of Phoenix, announced Monday that it will be sold to a group of investors for $1.1 billion. The purchase, made by three investment firms, will make Apollo a privately held company.

Tony Miller, former deputy secretary of the U.S. Department of Education and partner at one of the purchasing firms, will serve as the new chairman of the Apollo Board of Directors. In a statement, Miller said the company wants to focus on its transformation and enhancing student outcomes.

"For too long and too often, the private education industry has been characterized by inadequate student outcomes, overly aggressive marketing practices and poor compliance. This doesn't need to be the case," Miller said. "We are committed to accelerating and enhancing efforts to establish the University of Phoenix as the leading provider of quality higher education for working adults and to continue supporting the organization's commitment to operating in a manner consistent with the highest ethical standards."

The U.S. Department of Education will have to decide whether to approve the sale in order for the company to remain eligible for federal student aid, Inside Higher Ed reported.

Apollo announced in January that it would explore the possibility of a change in control. In recent years, the company has reported declining revenue as enrollment at the University of Phoenix has plummeted.

 

Related Links

Apollo Education Group Press Release

http://phx.corporate-ir.net/phoenix.zhtml?c=79624&p=irol-newsArticle&ID=2136316

Inside Higher Ed

https://www.insidehighered.com/news/2016/02/09/apollos-new-owners-seek-fresh-start-beleaguered-company