Perdoceo Education signs deal to acquire South University for up to $234 million

M&A · Partnership
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Summary · why it matters

Perdoceo Education said Monday it has entered into a definitive agreement to acquire 100% of the membership interests of South University Savannah from South University – Member. The company expects to complete the acquisition as early as April 2027, after which South will operate as a for-profit institution. Perdoceo expects to pay approximately $130 million to $140 million in cash at closing, after adjustments for cash, net working capital, and certain debt-like items agreed upon, based on South's balance sheet as of the beginning of April 2027, as well as indebtedness and Seller transaction expenses outstanding at closing. The consideration also includes $18 million of deferred consideration in installments over 24 months following closing and up to $56 million of earn-out payments tied to specified EBITDA thresholds for fiscal years 2027, 2028, and 2029. Perdoceo said it remains on track to achieve its full-year adjusted operating income outlook of $258 million to $263 million.

Impact on stocks 1

Consumer Discretionary▲ · 1 stocks
Perdoceo Education Corp
PRDO
▲ PositiveCapitalrelevance

Perdoceo signs definitive agreement to acquire South University for up to $234 million, an M&A event.

Off-coverage companies 2

South University - MemberPrivate± Mixed
Capitalrelevance

South University - Member is the seller of South University Savannah in the acquisition.

South University SavannahPrivate± Mixed
Capitalrelevance

South University Savannah is the entity being acquired by Perdoceo.

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