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Perdoceo Education Corporation Signs Definitive Agreement to Acquire South University

PRDO
  • Perdoceo Education Corporation announced a definitive agreement to acquire 100% of South University Savannah, LLC from South University – Member, Inc.
  • The transaction is expected to close as early as April 2027, subject to regulatory, accreditor, and closing conditions.
  • South University will operate as a for-profit institution following the acquisition.
  • South University was founded in 1899 in Savannah, Georgia, serves approximately 10,500 students, operates 11 campus locations across seven states, and offers online programs.
  • South University holds SACSCOC accreditation through 2034.
  • The acquisition will expand Perdoceo's graduate health sciences portfolio, focusing on physician assistant, anesthesiologist assistant, pharmacy, nursing, physical therapy assistant, occupational therapy assistant, public health, and counseling programs.
  • Perdoceo plans to invest in clinical placement capacity, preceptor networks, faculty, instructional technology, and licensure exam preparation for South University.
  • Consideration includes $130 million to $140 million in cash at closing, $18 million in deferred payments over 24 months, and up to $56 million in earn-out payments tied to EBITDA thresholds for 2027, 2028, and 2029.
  • Perdoceo has secured a buyer-side representation and warranty insurance policy to protect against certain risks.
  • The deal is funded by Perdoceo's cash on hand, requires no financing conditions, and has been approved by both boards.
  • For the year ended December 31, 2025, South University reported approximately $291 million in revenues and $34.0 million in adjusted operating income.
  • Perdoceo expects the transaction to be immediately accretive to adjusted operating income starting in 2027.
  • Perdoceo reaffirmed its fiscal year 2026 adjusted operating income outlook of $258 million to $263 million.
  • The purchase agreement allows for termination if closing does not occur by July 9, 2027.