Perdoceo to Acquire South University in Cash Deal Worth Up to $224 Million

Perdoceo Education Corporation (PRDO) has entered into a definitive agreement to acquire South University for an initial cash payment of $150 million, with potential for additional deferred and earn-out payments. South University, currently a nonprofit institution, will be converted to a for-profit entity post-acquisition. For the year ended December 31, 2025, South University had unaudited revenues of approximately $291 million and served around 10,500 students.

Key Details

• Transaction Value: The deal includes a $150 million initial cash payment, $18 million in deferred cash consideration over 24 months, and up to $56 million in earn-out payments tied to EBITDA thresholds for fiscal years 2027, 2028, and 2029.
• Timeline & Conditions: The acquisition is expected to close as early as April 2027, subject to customary closing conditions, including approvals from educational regulatory agencies and antitrust clearance. The agreement can be terminated if closing does not occur by July 9, 2027.
• Guidance Reaffirmed: In connection with the announcement, Perdoceo reaffirmed its full-year adjusted operating income outlook of $258 million to $263 million.