College graduates, Domestic, For-Profit, Investors, Required - Written by Elbert Chu on Thursday, August 4, 2011 15:22 - 0 Comments
DeVry Buys Medical School, American University of the Carribean
by Elbert Chu
DeVry Inc. (NYSE: DV) announced it paid $235M in cash for America University of the Carribean, their second medical school after Ross University School of Medicine, also in the islands. The stock was trading pretty much flat heading into the close.
AUC enrolls 1,000 medical students , 90% which are Americans, compared to Ross’s 4,800 students. UBS analyst Ariel Sokol calls the AUC 0.8% default rate in 2008 “minuscule.”
Sokol thinks the purchase is a smart acquisition compared to many of the other for-profit companies who are using extra cash to repurchase stock. Besides strengthening DeVry’s position in healthcare education, Forbes reports the medical students are helping buffer the weak enrollment numbers plaguing the industry in the wake of new regulations:
In the U.S., DeVry owns a nursing school chain, Chamberlain, and Carrington, which offers physician’s assistant courses and other healthcare degrees.
The company’s medical and healthcare division makes up 26.5 percent of its revenue, according to FactSet. Chamberlain’s enrollments growth has helped DeVry weather the steep decline in student enrollments that has hit the for-profit education sector since late last year.
The Oakbrook Terrace, IL-based DeVry expects the acquisition to add $.05 a share for year ending June 2012.
Full article at Forbes.
Leave a Reply
We welcome Tips & Pitches
Latest WA Original Features
The Pulitzer Prize winning investigation newsroom digs into for-profit education.
- Interview: UoPeople Founder Shai Reshef On Edu Tech, Free Tuition & P2P Learning
- Cheating in School— How the Digital Age Affects Attitudes About Plagiarism [Infographic]
- U of Phoenix: Raises tuition, Enrollment drops, Still Making Plenty of Cash
- Guest Column from Hansoo Lee of Magoosh.com: SAT Scores are Falling – Now What?
- How Video Games Use Education and Learning Elements [Infographic]
MARKET INTRADAY SNAPSHOT
- Education & Tech Companies We Follow
Cost of Education, Domestic, Education Quality, Ethics, For-Profit, Regulatory, Required, Students, University & College - Mar 11, 2012 21:17 - 0 Comments
More In For-Profit
- Heard: MOOCs Growing From Stanford to Georgia Tech to MIT to Udacity and Udemy
- Heard: California Applies Headlock, Begins Clamp Down On For-Profit Colleges
- Heard: Capella University On The Ropes But Planning For A Comeback In Round 4
- Hungry Hippos: For-Profits Gobble Up Half of Military Education Benefits
- Researchers Find Students At For-Profit Colleges More Likely To Be Unemployed
Blended Learning, Domestic, Elementary / Primary / Junior, Flipped Classrooms, High school / Secondary 2, International, Open Source Education, Required, School teachers, Startups, Students, Technology - Mar 12, 2012 19:04 - 0 Comments
More In Technology
- Opinion: Online Tutoring Disrupting Traditional Tutor Model, But Expanding The Tutor Industry
- The “Mathlash”: Mathmeticians Strike Back Against Silicon Valley’s Foray Into Math Edu
- Shantanu Sinha of Khan Academy Explains The Gamification Approach of Khan
- Fast Company Ranks The 10 Most Innovative Education Companies
- Must See: Interactive Tour of the Universe — Online Tool for Teachers and Gawkers
Domestic, Education Quality, For-Profit, Friend, Fraud, or Fishy, Required, University & College - Feb 10, 2012 16:36 - 0 Comments
More In Friend, Fraud, or Fishy
- Infographic & Video: Is America Witnessing A Growing Education Bubble? Part II Of II
- Investigative Opinion: For-Profit Kaplan University’s $250 Million Payout To Former Executives
- Heard: Mitt Romney Takes Money From, Offers Praise To Full Sail University Leaders
- Heard: New York Attorney General Is Investigating Pearson Education – NYTimes.com
- Guest Column: A Response To Occupy Wall Street’s View Of Student Debt