The owner of the University of Phoenix is targeting a valuation of $1.2 billion in its U.S. IPO, according to Reuters. Existing stockholders of Phoenix Education Partners are seeking up to $140.3 million by offering 4.25 million shares priced between $31 and $33 apiece. Private capital firm Apollo Global, and investment firm Vistria group are selling 3.55 million, and 0.7 million shares respectively. Funds affiliated with Apollo Global and Vistria purchased Apollo Education Group for $1.1 billion in 2017.
According to a report by Bloomberg, the majority owner of the university paid a $12.2 million fee to the University of Idaho in June after terminating a 2023 agreement to sell most of its assets. The University of Idaho has been in talks since 2023 to buy the University of Phoenix and the purchase agreement was extended in June to give more time for discussions with legislators and stakeholders. However, the two institutions eventually decided to scrap that plan, which had been criticized by lawmakers and others in Idaho.
Idaho President Scott Green had said in a statement that the deal has become “cost prohibitive and potentially distracting to other work.” “We respect the University of Phoenix and wish them all the best. We appreciate their commitment to these conversations, and we learned many things we may be able to incorporate into our work,” he said.
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The University of Phoenix had a net income of $113.1 million on revenue of $950 million for the fiscal year ended Aug. 31, 2024, compared with net income of $64.9 million on revenue of $835.2 million in the same period the year earlier, according to a filing.
The university was founded in 1976, and offers online learning including bachelor’s and master’s degrees in various subjects including business, healthcare, and education. In 2019, the Federal Trade Commission (FTC) reached a settlement with the University of Phoenix over aggressive marketing practices relating to a campaign several years prior to its take-private by Apollo and Vistria. Prior to a change in ownership, the company had been criticized for offering lower-quality degree programs.
The IPO is led by Morgan Stanley, Goldman Sachs Group Inc., Bank of Montreal, Jefferies Financial Group Inc. and Apollo Global Securities. The company plans for its shares to trade on the New York Stock Exchange under the symbol PXED.