Advisory Board To Buy Royall For $850 Mln

(RTTNews) - The Advisory Board Co. (ABCO) said Wednesday that it has agreed to buy higher education marketing firm Royall & Co. for $850 million, consisting of $750 million in cash and $100 million in Advisory Board stock.

The Advisory Board will fund the cash component of the purchase price with borrowings under new senior secured credit facilities, consisting of a $725 million term loan and an undrawn $50 million revolving credit facility, along with about $65 million of cash on hand.

The deal is expected to close in January 2015.

The Advisory Board expects the deal to be about $0.10 accretive to calendar 2015 adjusted earnings per share.