Perdoceo Education agreed to acquire South University, adding 11 campuses and online programs in nursing, pharmacy and physician assistant studies. The deal still needs regulatory and accreditor approvals and could close as early as April 2027.
Perdoceo plans to fund the acquisition with cash on hand; it had $734.8 million in cash and equivalents on June 30, 2026. The agreement includes $18 million in deferred payments over 24 months and up to $56 million in earn-outs tied to EBITDA targets for fiscal years 2027–29. The termination deadline is July 9, 2027. Management expects the deal to immediately increase adjusted operating income once completed.
Perdoceo’s existing health-sciences segment, the University of St. Augustine for Health Sciences, reported a 10.2% second-quarter revenue increase and operating income of $3.6 million, compared with a $1.7 million loss a year earlier. Colorado Technical University’s operating income fell 5.1%, which the article attributes to higher legal expenses; American InterContinental University System enrollment declined 1.0% and revenue fell 1.8%.
