Apollo Education Eyes Sale to Private Equity Firm After Troubled Year

Apollo Education Eyes Sale to Private Equity Firm After Troubled Year

SEEKING SAFE HARBOR Apollo Education Group, the owner of the for-profit University of Phoenix, is in talks Apollo Global Management, a New York-based private equity firm, about a possible sale. The two are not affiliated. Apollo Education was valued at $714 million before its stocks spiked in response to the announcement of the sales talks, and the Wall Street Journal forecasts that the deal could be worth $1 billion.

University of Phoenix's student numbers continue to suffer in the face of tighter regulations and ongoing investigations, and its stock has lost three-quarters of its value in the last twelve months, dropping 38 percent in Q4 2015 alone. This is the third quarter that the company has operated at a loss. Barclays and Credit Suisse are advising Apollo Education on the prospective sale.

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