Perdoceo Education Acquires USAHS to Enhance Health Sciences Education Portfolio

Perdoceo Education Strengthens Position in Health Sciences through Strategic Acquisition

Perdoceo Education Corporation solidifies its foothold in the postsecondary education sector with the recent acquisition of the University of St. Augustine for Health Sciences (USAHS) for approximately $138 million. This strategic move positions Perdoceo as a prominent player in the health sciences education landscape, as USAHS is recognized as one of the leading institutions for graduate degrees in fields such as physical therapy, occupational therapy, speech-language therapy, and nursing. Established in 1979, USAHS operates multiple campuses across California, Florida, and Texas, while also offering robust online education options. The acquisition enables Perdoceo to diversify its educational offerings and cater to the growing demand for skilled professionals in the health sciences sector.

In the nine months ending September 30, 2024, USAHS reported unaudited revenues of around $114 million and an operating income of approximately $10.5 million. With a student body of about 4,100 graduate and post-graduate students, USAHS's performance underscores its viability and potential for growth within Perdoceo’s portfolio. The adjusted operating income for this period reached roughly $25 million, considering depreciation and amortization costs. Perdoceo anticipates that the integration of USAHS will enhance its adjusted operating income starting in 2025, paving the way for further expansion in subsequent years. This acquisition aligns well with Perdoceo’s objective to provide industry-relevant education that meets the needs of adult learners, thereby reinforcing its commitment to academic excellence and student success.

Perdoceo’s existing academic institutions, including Colorado Technical University and the American Intercontinental University System, already offer a variety of degree programs from associate to doctoral levels. With the addition of USAHS, Perdoceo not only expands its program offerings but also strengthens its capacity to utilize innovative learning technologies. The incorporation of platforms like intellipath® reflects Perdoceo’s dedication to enhancing student engagement and improving educational outcomes. As the company reaffirms its fiscal year 2024 outlook, projecting an adjusted operating income between $188 million and $191 million, the acquisition positions Perdoceo for sustainable growth and competitive advantage in the evolving landscape of higher education.

In addition to the acquisition, Perdoceo remains focused on maintaining its commitment to adult learners and industry-relevant education. The company’s strategy emphasizes the integration of technology in education, which is increasingly crucial in today’s digital learning environment. With the acquisition of USAHS, Perdoceo not only expands its operational footprint but also enhances its ability to respond to the rising demand for health care professionals across the United States.

This strategic acquisition marks a significant chapter in Perdoceo's growth narrative, as it continues to innovate and adapt to the shifting educational landscape while striving to meet the needs of students and industry alike.