Strategic Education Inc. to raise $191.5M through public stock offering
Herndon-based education company to use funds toward recent acquisition
Herndon-based education company Strategic Education Inc. announced Thursday that it plans to raise $191.5 million through a public stock offering.
The company, through Aug. 10, will offer for sale 1.9 million shares of its common stock at a public offering price of $105 per share. Strategic Education intends to use some of the proceeds to fund part of its proposed acquisition of Laureate Education Inc.’s Australia and New Zealand operations, which the company announced July 29 it would buy for $642.7 million in cash.
If the proposed acquisition does not finalize, then Strategic Education will use the proceeds for general corporate purpose, which could include other acquisitions, according to the company statement. The transaction is subject to closing conditions and regulatory approvals, but is expected to close by the first quarter of 2021. SunTrust and Bank of America have also agreed to expand Strategic Education’s existing revolving credit facility from $250 million to $350 million, according to the company.
Strategic Education’s subsidiaries include Strayer College and Capella University.
The online education provider reported nearly $1 billion in revenue last year at $997.1 million.