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Adtalem To Acquire Walden University For $1.48 Bln - Quick Facts

Laureate Education, Inc. (LAUR) has entered into a definitive agreement under which it will sell Walden University to Adtalem Global Education Inc. (ATGE). The transaction value is $1.48 billion in cash. Walden University is a regionally accredited higher education institution in the United States offering online doctoral, master's, bachelor's, and graduate certificate programs.

Adtalem expects the transaction to contribute significantly to its free cash flow and earnings per share, generating $60 million in incremental free cash flow excluding special items in year one and adding $0.75 in earnings per share from continuing operations excluding special items in year two. The company anticipates to generate annual cost savings of approximately $60 million. Adtalem expects the acquisition will generate between 10% and 12% ROIC beginning in year one, significantly exceeding the current WACC of approximately 8%.

Laureate Education said Walden University will remain part of the Laureate International Universities network until the closing of the deal, which is expected to occur mid-calendar 2021.

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