Apollo Global To Buy Majority Stake In Open Colleges Australia

(RTTNews) - Apollo Education Group, Inc. (APOL) said Tuesday that its subsidiary Apollo Global, Inc. has agreed to buy Open Colleges Australia Pty Ltd., one of Australia's oldest and largest providers of distance learning.

Apollo Global, through a wholly-owned subsidiary, has agreed to purchase 70% of the outstanding shares of Open Colleges for cash of about A$110 million (US$98.5 million based on current exchange rates), plus contingent payments of up to an aggregate of A$52.5 million (US$47 million), principally based on 2014 operating results. Apollo Global has an option to purchase the remaining 30% in the future.

The acquisition is expected to be completed during the second quarter of fiscal year 2014.

Based on preliminary analysis, Apollo Education Group does not expect the deal to have a material impact on its fiscal 2014 financial results, excluding acquisition expenses and other special charges, and anticipates it will be long-term value accretive.