Apollo has purchased 70% of outstanding shares of Open Colleges for AUD$110 million plus future instalment payments totalling up to AUD$52.5 million, based on 2014 operating results.
Apollo Global also has the option to purchase the remaining 30% of the distance learning company in the future. Its other education brands include BPP University in the UK, Universidad Latinoamericana in Mexico, Universidad de Artes, Ciencias y Comunicación in Chile and Bridge School of Management in India.
Apollo Education Group also wholly owns US-based online education giant University of Phoenix.
“As we consider our international expansion options, there are clear benefits in terms of the global presence, expertise and significant resources”
“We are proud to welcome Open Colleges Australia into the Apollo Education Group family,” said Greg Cappelli, Apollo Education Group Chief Executive Officer.
“Aligned with our strategy to diversify globally, Open Colleges broadens our reach to serve adult learners in the growing Australian education and training market, and provides a platform for Apollo Global to operate and expand in other areas of the region.”
Open Colleges offers more than 130 courses in disciplines including health care, community services, business and management, technology and design.
It has delivered education and training to over 700,000 Australians in its more than 100-year history but joint CEO Mark Rohald says the acquisition will enhance the institution’s ability to expand overseas.
“As we consider our international expansion options, there are clear benefits in terms of the global presence, expertise and significant resources of Apollo Global,” he said.
Formed in 2007, Apollo Group is the company’s investment branch focused primarily on businesses in the international education services sector.
The acquisition is anticipated to be completed during the second quarter of fiscal year 2014.