WSJ: Private Equity Firm Apollo Global In Talks To Buy Apollo Education

(RTTNews) - Private equity firm Apollo Global Management LLC (APO) is in advanced talks to buy for-profit education provider Apollo Education Group Inc. (APOL), the Wall Street Journal reported Monday, citing people familiar with the matter. Shares of Apollo Education gained more than 22 percent in extended trades following the report.

According to the WSJ report, a deal between the two companies could be worth about $1 billion and may be reached in the next few weeks. Apollo Education was reportedly in talks with several private equity firms since late 2015, with Apollo Global Management the only company in the fray now.

Apollo Education, the owner of the University of Phoenix, said on Monday that its board of directors has decided to explore strategic alternatives, while the company continues to execute its ongoing business transformation. The company added that its board is currently in talks that could potentially lead to a change of control of the company.

Apollo Education has retained Barclays and Credit Suisse as its financial advisors, while Sullivan & Cromwell has been retained as its legal advisor.

The company also reported its financial results for the first quarter on Monday. Net loss for the first quarter was $60.8 million or $0.56 per share, compared to net income of $33.8 million or $0.31 per share in the year-ago quarter. Excluding items, adjusted earnings were $0.29 per share for the quarter.

Net revenue for the quarter declined 18 percent to $586.0 million from $714.5 million in the prior-year period.

APOL closed Monday's regular trading at $6.38, down $0.21 or 3.19 percent on a volume of 6.57 million shares. In after-hours, the stock gained $1.42 or 22.26 percent to $7.80.

APO closed Monday's trading at $14.02, up $0.02 or 0.14 percent on a volume of 2.43 million shares.