Advisory Board Company To Sell Health Care, Education Businesses - Quick Facts

(RTTNews) - The Advisory Board Company (ABCO) announced a definitive merger agreement to sell its health care business to Optum, a health services company, and a definitive purchase agreement to sell its education business to affiliates of Vista Equity Partners, an investment firm. Stockholders of the company would receive estimated cash per share of $54.29. Total merger transaction value, including the after-tax proceeds for the sale of the education business, is approximately $2.58 billion. Robert Musslewhite, CEO of The Advisory Board Company, will continue to lead its health care advisory business. As a Vista Equity Partners portfolio company, the education business will operate as standalone.

Prior to the closing of the merger of the health care business with Optum, affiliates of Vista will acquire the company's education business, including Royall & Company, for $1.55 billion. Following the closing of the education transaction, the company's health care business will merge with Optum for $1.3 billion, including the assumption of The Advisory Board Company's debt. All of the outstanding shares of common stock of the company will be converted into the right to receive $52.65 per share in cash plus an additional cash amount per share based on the after-tax value of the company's stake in Evolent at closing.

"Our board of directors and executive leadership team conducted a thorough review of strategic alternatives for the company. After careful consideration, we determined that transactions with Optum and Vista Equity Partners allow us to accelerate the success of our health care and education businesses while realizing immediate value for stockholders," said Robert Musslewhite, CEO of The Advisory Board Company.