Adtalem Global Education, a global education provider, said it has signed an agreement to transfer ownership of DeVry University and its Keller Graduate School of Management to Cogswell Education LLC, a company that has significant experience in higher education.
The agreement is subject to certain terms and conditions to be met during the transition process, including regulatory and accreditor approval, and the transaction is anticipated to be completed in 2018.
"I am thrilled for DeVry University and its students as it enters this new phase in its history," said Lisa Wardell, president and CEO of Adtalem. "Cogswell Education is the right partner to fuel DeVry's mission and commitment to its students, ensuring high-quality programs that help students achieve their career goals."
Cogswell Education will assume full ownership of DeVry University with a campuses in Downers Grove and Addison, and, while no consideration will be paid to Adtalem at closing, the agreement includes an earn-out for Adtalem, which is based on DeVry University's future performance over a multiyear period. Adtalem has also committed to delivering DeVry with a minimum working capital balance, further supporting DeVry's future success.
"We will work closely with Cogswell Education over the coming months to finalize the transfer of ownership and ensure a smooth transition for DeVry University, its colleagues and students," Wardell said. "Adtalem will now have more ability to focus on its remaining institutions across our three key verticals: medical and health care, technology and business, and professional education. Adtalem will always be grateful to DeVry University for our legacy in technology education and leadership in serving the educational needs of new majority students."
James Bartholomew, president of DeVry University, added, "I am pleased that we have identified the best new owner for DeVry University, aligned to our purpose and values. Together, we can continue to serve and empower our students to change their lives."