University of Phoenix Affiliation Agreement Extended, Talks Continue
June 28, 2024
MOSCOW, Idaho — Today, University of Idaho Board of Regents approved University of Idaho’s request to extend the Asset Purchase Agreement for the University of Phoenix transaction through June 10, 2025. This allows time to continue conversations with legislators and stakeholders and incorporate feedback from legislators and other Idaho stakeholders into the transaction and make amendments based on the feedback.
There is no commitment to a closing at this time, rather any amended transaction must go to the Regents for consideration and approval in an open public meeting.
“The merits of this affiliation have never been stronger,” U of I President Scott Green said. “The value to Idaho’s educational system, adult learners and Idaho’s industries is transformational. The affiliation also diversifies revenue streams and strengthens our financial future.”
The extension includes several other measures:
- Non-exclusivity, allowing other potential buyers to be considered by the owners.
- In return for the ability of the University of Phoenix owners to entertain other offers, University of Idaho will receive $5 million upon signing of the extension agreement.
- If the deal is not closed by June 30, 2025, U of I will receive an additional $5 million (for a total of $10 million).
- If University of Phoenix sells to another entity, U of I will receive $15 million (for a total of $20 million).
The business and educational merits of the affiliation remain strong. University of Phoenix continues to show strong enrollment growth, at 8% and continues to improve retention and graduation rates. Its adjusted EBITDA is well in excess of the $150 million forecasted a year ago and its free cash flow for the last year is well over $200 million. The value to Idaho's adult learners and businesses also remains strong. This affiliation will provide more opportunities to Idaho's place-bound adult learners to earn more money and help Idaho industries by adding to Idaho's educated workforce.
“We have a state-wide mission to serve all of Idaho as its land grant institution. We must lead new ways of delivering education to our citizens,” Green said. "The needs of adult learners are growing, and we need to be diligent in our efforts to meet that demand."
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Media Contact
Jodi Walker
Executive Director of Communications
208-885-4295
jwalker@uidaho.edu
About the University of Idaho
The University of Idaho, home of the Vandals, is Idaho’s land-grant, national research university. From its residential campus in Moscow, U of I serves the state of Idaho through educational centers in Boise, Coeur d’Alene and Idaho Falls, nine research and Extension centers, plus Extension offices in 42 counties. Home to nearly 11,000 students statewide, U of I is a leader in student-centered learning and excels at interdisciplinary research, service to businesses and communities, and in advancing diversity, citizenship and global outreach. U of I competes in the Big Sky and Western Athletic conferences. Learn more at uidaho.edu.