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Adtalem to Acquire Walden University from Laureate Education for USD 1.48bn
Tuesday 15 September 2020

Chicago, US-based workforce solutions provider Adtalem (NYSE: ATGE) has agreed to acquire US-based online healthcare education provider Walden University from Laureate Education, Inc. (NASDAQ: LAUR) for USD 1.48bn in a cash transaction, to expand Adtalem's capabilities and enhance learning experiences for students, the company said.

With the addition of Walden, Adtalem will become a national healthcare educator, providing comprehensive workforce solutions to employers through proven learning modalities with superior academic outcomes.

With Walden, Adtalem becomes a more strategically focussed business with significant scale in healthcare, an industry with extremely attractive short-term and long-term tailwinds.

By adding Walden to its existing healthcare portfolio which includes American University of the Caribbean School of Medicine, Chamberlain University, Ross University School of Medicine, and Ross University School of Veterinary Medicine Adtalem is better positioned to increase the talent supply to address the rapidly growing and unmet demand for healthcare professionals in the US and globally.

The combined organisation will have 26 campuses across 15 states and four countries, 6,100 dedicated faculty members, and more than 90,000 students with 34% African American enrollees. The combined organisation will rank number one for total undergraduate and graduate nursing enrollment in the US and be the world's top provider of MDs, PhDs and nursing degrees to African Americans.

The acquisition is expected to provide significant potential for growth and margin expansion through new and expanded offerings as well as revenue and cost synergies.

These financial benefits are expected to lead to substantial gross margin and EBITDA margin expansion, and robust cash flow generation to invest in its offerings while paying down debt.

Morgan Stanley and Co. LLC is acting as Adtalem's financial advisor and committed financing is being led by Morgan Stanley Senior Funding Inc. Covington and Burling LLP is providing legal counsel.

Adtalem Global Education Inc. (NYSE: ATGE) is the parent organisation of American University of the Caribbean School of Medicine, Association of Certified Anti-Money Laundering Specialists, Becker Professional Education, Chamberlain University, EduPristine, OnCourse Learning, Ross University School of Medicine and Ross University School of Veterinary Medicine.

Walden University was founded to support working professionals in achieving their academic goals and making a greater impact in their professions and communities.

Adtalem Global Education is the parent organisation of Chamberlain University, Ross University School of Medicine, and Ross University School of Veterinary Medicine, American University of the Caribbean School of Medicine, Association of Certified Anti-Money Laundering Specialists, Becker Professional Education, EduPristine, and OnCourse Learning.

Laureate Education, Inc. provides accessible, high-quality undergraduate, graduate and specialised degree programmes.
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Date Published: 15/09/2020

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