Perdoceo Education Acquires USAHS to Enhance Health Sciences Education Portfolio

Perdoceo Education Strengthens Position in Health Sciences with Strategic Acquisition

Perdoceo Education Corporation has recently solidified its standing in the postsecondary education landscape by completing the acquisition of the University of St. Augustine for Health Sciences (USAHS) for approximately $138 million. This acquisition marks a significant strategic move for Perdoceo, as USAHS is recognized as a premier institution specializing in graduate health sciences degrees. With a strong focus on programs such as physical therapy, occupational therapy, speech-language therapy, and nursing, USAHS operates multiple campuses across California, Florida, and Texas, while also offering online education. The integration of USAHS will enable Perdoceo to broaden its educational offerings and enhance its portfolio in the health sciences sector, catering to an increasing demand for qualified professionals in this field.

The financial performance of USAHS further underscores the strategic value of this acquisition. For the nine months ending September 30, 2024, USAHS reported unaudited revenues of approximately $114 million, with an operating income of around $10.5 million. Notably, the adjusted operating income for this period reached roughly $25 million, taking into account depreciation and amortization. Perdoceo anticipates that the integration of USAHS will not only bolster its adjusted operating income starting in 2025 but also drive further growth opportunities in 2026. This optimistic outlook aligns with Perdoceo's commitment to enhancing educational outcomes and meeting the needs of adult learners, which is critical in today's fast-evolving job market.

Moreover, Perdoceo is poised to leverage its existing academic institutions, including Colorado Technical University and the American Intercontinental University System, to support the integration of USAHS. With a focus on industry-relevant education, Perdoceo aims to provide degree programs that range from associate to doctoral levels. The company’s innovative learning technologies, such as the intellipath® platform, exemplify its dedication to improving student engagement and academic success. As Perdoceo reaffirms its fiscal year 2024 outlook, projecting an adjusted operating income between $188 million and $191 million, the acquisition of USAHS is expected to significantly contribute to this growth trajectory.

In addition to its immediate financial benefits, the acquisition positions Perdoceo as a more formidable player in the competitive education landscape, particularly in health sciences education. By expanding its program offerings, Perdoceo not only enhances its market reach but also addresses the critical shortage of skilled healthcare professionals in the United States. This strategic move is indicative of Perdoceo’s forward-thinking approach to education and its commitment to fostering workforce development in high-demand fields.

With the acquisition finalized, Perdoceo Education is set to embark on a new chapter that could redefine its impact on health sciences education and further solidify its role as a leader in the postsecondary education sector.