Shares of Adtalem Global Education Inc.
formerly known as DeVry Education Group Inc., soared 9% in midday trade Tuesday toward the highest close since February 2015, after the for-profit education company essentially gave DeVry University and Keller Graduate School to Cogswell Education LLC. Adtalem said late Monday that “no consideration” will be paid at the deal’s closing, which is expected in 2018. The deal includes, however, an earn-out for Adtalem based on DeVry University’s performance over a multi-year period, but also a commitment from Adtalem to provide DeVry with a minimum working capital balance. Adtalem changed its name from DeVry in May 2017. The “transfer of ownership” deal of DeVry University comes about about 14 months after a settlement was reached with the Obama administration over claims that it ran misleading advertisements. Adtalem’s stock has rallied 42% year to date, while the S&P 500
has gained 18%.
View more information: https://www.marketwatch.com/story/adtalems-stock-soars-after-deal-to-transfer-devry-univ-ownership-to-cogswell-for-no-consideration-2017-12-05