Perdoceo to Acquire South University in Definitive Deal
PRDO sits 24% above its 52-week low of $26.655.
Summary
Perdoceo Education has signed a definitive agreement to acquire South University, expanding its footprint in post-secondary education with a well-known brand that has multiple campuses and online programs. The purchase price is around $130 million to $140 million, with $18 million of deferred consideration payable in installments over 24 months after closing, and Perdoceo will use cash on hand for the transaction. The deal is subject to regulatory and accreditation approvals, which could take several months. Perdoceo sees FY26 adjusted operating income of $258 million to $263 million. The acquisition is likely material given Perdoceo's market cap of roughly $2 billion, and follows strong Q2 results reported in August, suggesting management is deploying capital for growth. Investors will watch for deal terms and accretion guidance when details emerge.
Updates
· SEC 8-K — The purchase price is up to $224 million: $150 million initial cash, $18 million deferred over 24 months, and up to $56 million in earn-outs tied to 2027-2029 EBITDA. Closing is expected as early as April 2027, with a termination fee of up to $20 million.
At the time of this announcement, PRDO was trading at $33.06 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2.1B. The 52-week trading range was $26.66 to $38.50. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.