Business
American Public Education, Inc. ("APEI") Announces Transformational Deal to Acquire Rasmussen University, the Largest Educator of ADN Nurses
- Combination will nearly double APEI's revenue to approximately $600 million(1) - APEI will become #1 educator of pre-licensure nurses (ADN/RN and PN/LPN)(2)
About this update from American Public Education, Inc.
[{"type":"text","content":"- Combination will nearly double APEI's revenue to approximately $600 million(1)\n - APEI will become #1 educator of pre-licensure nurses (ADN/RN and PN/LPN)(2) with over 10,000 nursing students\n - Purchase price is $329 million, consisting of $300 million in cash plus $29 million in preferred shares, which represents the value of expected tax step-up benefits\n - Rasmussen expects 2021 pro forma net income of $7 million and EBITDA(3) of approximately $44 million\n - Post-acquisition APEI expects to have approximately $31 million of net income and approximately $100 million of Adjusted EBITDA(3) for 2021\n\n\nCHARLES TOWN, W.Va., Oct. 28, 2020 /PRNewswire/ -- American Public Education, Inc. (Nasdaq: APEI) (\"APEI\") – parent company of online learning provider American Public University System (\"APUS\") and on-ground, pre-licensure Hondros College of Nursing (\"Hondros\") – announced that it has entered into a definitive agreement to acquire Rasmussen University (\"Rasmussen\"), a nursing- and health sciences-focused institution serving over 18,000 students at its 24 campuses across six states and online.\n\n \n \n \n \n \n \n\n \nAngela Selden, chief executive officer of APEI, stated, \"We are very enthusiastic about the acquisition of Rasmussen, as it will add another #1 market position -- pre-licensure nursing (ADN/RN and PN/LPN) -- to our current #1 market position with APUS in serving military and veteran students. Collectively, Rasmussen and Hondros will be a nursing education powerhouse serving over 10,000 students. The transaction creates scale and diversifies APEI's revenue with a mix that will consist of approximately one-third military and veterans, one-third nursing, and one-third online adult learners. From cultural alignment on affordable, inclusive, and high-quality education to strong regulatory track records, we believe the combination will be unparalleled in the industry. This acquisition amplifies our brand promise to provide our students with a Higher Education Return on Investment or 'HEROITM'.\"\nThe acquisition of Rasmussen represents a significant step in positioning APEI that began a year ago and has included a return to growth at APUS and a turnaround at Hondros. This transaction provides important scale benefits and helps establish APEI as a platform for additional transactions that can create meanin...