Apollo Group, Inc. (Nasdaq: APOL) (“Apollo Group” or “the Company”)
today announced that its 80.1%-owned subsidiary Apollo Global, Inc. has
agreed to acquire UK-based BPP Holdings plc (“BPP”) (LSE:BPP), a leading
provider of education and training to professionals in the legal and
finance industries. Apollo Global has agreed to purchase all of the
outstanding shares of BPP at 620 pence per share in cash, representing
an enterprise value of approximately $540 million. The transaction is
structured as a court-sanctioned acquisition arrangement under the laws
of the UK and is subject to court, shareholder and regulatory approval
and other customary closing conditions. The transaction, if approved, is
expected to close during Apollo Group’s fiscal fourth quarter. The
transaction terms and structure are described in more detail in a Form
8-K filed by Apollo Group today with the Securities and Exchange
Commission, which includes a copy of the announcement released in the UK
today by Apollo Global pursuant to applicable UK law.
The acquisition will provide Apollo Global with access to lifelong
learning programs in the UK’s professional education sector, establish a
significant UK and pan-European platform, and expand the range of
advanced degrees and cross border educational opportunities available to
“We’re thrilled to be joining forces with this outstanding educational
institution in the UK,” said Greg Cappelli, co-chief executive officer
of Apollo Group and chairman of Apollo Global. “The combination of our
brands, educational offerings and technological capabilities will
provide greater opportunities for students and employees of both
institutions. We look forward to working together and building upon the
success of this world class organization.”
"The offer provides an excellent opportunity for all of our
stakeholders,” said David Sugden, chairman of BPP Holdings. “For
shareholders, it presents an opportunity to realize an attractive
premium in cash for their shares. For our employees, it allows them to
continue their excellent work in making BPP a leading education
provider. For our customers, they will see our educational products
enhanced by the expertise that Apollo will provide.”
Founded in 1976 and based in London, England, BPP enjoys an excellent
reputation among business and legal communities throughout Europe. The
institution is organized into three business divisions: (1) Professional
Education, which provides certification and continuing education; (2)
College of Professional Studies, which operates four law schools, human
resource training and a business school; and (3) Mander Portman Woodward
(MPW), which operates independent fifth and sixth form colleges (similar
to preparatory schools in the US). BPP is the first private sector
institution to have been granted degree awarding powers in the UK.
“The UK is a large and growing market with strong student participation
rates and an increasing interest in online learning,” added Mr.
Cappelli. “Furthermore, the UK has a tremendous international reputation
for higher education and is the second largest market in the world for
international students pursuing degrees. We believe this is an excellent
market and company from which to establish our European base.”
BPP’s focus on academic quality and student outcomes has allowed it to
maintain a high quality reputation amongst employers and consumers. The
company’s professional education business, fifth and sixth form
colleges, law school and the recently established business school are
all well positioned to take advantage of the opportunities provided in
About Apollo Group, Inc.
Apollo Group, Inc. has been an education provider for more than 30
years, providing academic access and opportunity to students through its
subsidiaries, University of Phoenix, Institute for Professional
Development, College for Financial Planning, Western International
University, Meritus University, Insight Schools and Apollo Global. The
Company's distinctive educational programs and services are provided at
the high school, undergraduate, graduate and doctoral levels in 40
states and the District of Columbia; Puerto Rico; Canada; Mexico; Chile;
and the Netherlands, as well as online throughout the world (data as of
February 28, 2009).
For more information about Apollo Group, Inc. and its subsidiaries, call
(800) 990-APOL or visit the Company’s website at www.apollogrp.edu.
About Apollo Global, Inc.
Apollo Global, Inc., a $1 billion joint venture formed in 2007, is 80.1%
owned by Apollo Group, Inc. and 19.9% owned by private equity firm, The
Carlyle Group. Apollo Global was formed with the intention of making a
range of investments in the international education services sector.
Apollo Global is a consolidated subsidiary of Apollo Group, Inc.
About BPP Holdings plc
BPP is a leader in the provision of professional education and training,
and developing careers by helping people to attain and build on
professional qualifications. BPP provides its training and professional
education through three separate operating divisions: BPP Professional
Education, BPP College of Professional Studies and Mander Portman
Woodward (premium independent fifth and sixth form colleges). In 2007
BPP College of Professional Studies was granted degree awarding powers.
Forward-Looking Safe Harbor
Statements in this press release regarding Apollo Group’s business
outlook, future financial and operating results, future enrollment, and
overall future strategy and plans, are forward-looking statements, and
are subject to the Safe Harbor provisions created by the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on current information and expectations and involve
a number of risks and uncertainties. Actual results may differ
materially from those projected in such statements due to various
factors. For a discussion of the various factors that may cause actual
results to differ materially from those projected, please refer to the
risk factors and other disclosures contained in Apollo Group’s
previously filed Form 10-K, Forms 10-Q, and other filings with the
Securities and Exchange Commission.
Investor Relations Contact:
Apollo Group, Inc.
Mercury Public Affairs
Sara Jones, 818-326-1871