- Strayer Schooling and Capella Schooling have agreed to a $1.9 billion all-stock deal.
- Strayer shareholders will personal about 52% of the mixed firm whereas Capella shareholders will personal about 48%.
(Reuters) – Strayer Schooling Inc will merge with smaller peer Capella Schooling Co in a $1.9 billion all-stock deal that may provide doctoral, grasp’s and bachelor’s packages, primarily for working adults throughout america.
Strayer shareholders will personal about 52 p.c of the mixed firm, and Capella shareholders will personal about 48 p.c, the businesses mentioned on Monday.
The mixed for-profit schooling firm will serve about 80,000 college students.
For-profit schools similar to Herndon, Virginia-based Strayer have struggled to develop scholar enrollments in recent times after robust U.S. guidelines on scholar debt pressured them to tighten admission requirements.
Strayer, which had a market worth of about $1.02 billion as of Friday, provides working adults packages in accounting, enterprise administration, data expertise and prison justice. It had 45,509 college students enrolled in its packages for the 2016 fall time period.
Minneapolis-based Capella Schooling had a market capitalization of about $764.5 million as of Friday. It offers doctoral, grasp’s and bachelor’s packages, primarily for working adults. (Reporting by Ankit Ajmera in Bengaluru; Enhancing by Bernard Orr and Sai Sachin Ravikumar)