iSCHOOLGUIDE: Education Corporation of America Set to Acquire Kaplan College Campuses

Career College Central Summary:

The Education Corporation of America is acquiring all the 38 Kaplan College campuses from Kaplan Higher Education, owned by Graham Holdings. The deal, according to the Washington Post, was made public last Thursday in the Securities and Exchange Commission."
"This purchase is an exciting opportunity for Education Corporation of America," Stu Reed, ECA's Chief Executive Officer, said.
"The Kaplan College campus portfolio offers programs that are a great fit with our Virginia College campuses, and are accredited by the same accrediting body, Accrediting Council for Independent Colleges and Schools (ACICS)"
Street Insider reported that the deal was an "all-stock transaction" and will grant Kaplan "preferred equity interest" in one of the biggest for-profit schools in the United States. The specific details of the deal, however, were kept undisclosed.
According to Brandon Gattrell of Education News, the move will give ECA more geographical coverage as the locations of the newly-acquired campuses and the old ones have very little overlapping. The deal is set to take effect in the next 90 to 180 days once it has been closed.
ECA will have 12,500 more students because of the acquisition. The company will now run "70 career-oriented campuses" in 20 states with about 30,000 students, including those enrolled online.

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