BIRMINGHAM, Ala., Sept. 3, 2015 /PRNewswire/ -- Education Corporation of America (ECA), which operates private, accredited colleges across the U.S., and Kaplan Higher Education, have completed the previously announced all-stock transaction exchanging 38 campuses, which include Kaplan College, Kaplan Career Institute, Texas School of Business and TESST College of Technology, for a preferred equity interest in ECA. Financial terms are not being disclosed.
"This purchase is an exciting opportunity for Education Corporation of America," said Stu Reed, Chief Executive Officer of Education Corporation of America. "Adding the Kaplan College campuses to our portfolio of career colleges strengthens our entire company by giving us the needed scale to prosper in this challenging industry. There is a very close alignment between the program offerings of the Kaplan College schools and ECA's Virginia College, which offers opportunity to introduce new programs to both. And it brings together two talented teams that are dedicated to providing students with a great career training experience. The new company is now well-positioned for growth and better able to help people who want to build a brighter future through career education."
Full conversion and integration of the campuses is expected to be complete in early 2016.
Both Kaplan College (and its affiliated schools) and Virginia College are accredited by Accrediting Council for Independent Colleges and Schools (ACICS). The geographic footprint of the new combined organization includes more than 70 career-oriented campuses and online programs across 20 states from coast to coast, serving approximately 30,000 students.
As part of the transaction, Kaplan College and its affiliated schools will be rebranded with a new name to be revealed in the coming weeks. The transaction, which was announced on February 12, 2015, does not include regionally accredited Kaplan University.
About Virginia College and Education Corporation of America
Growing from 34 campus locations to 72 Birmingham, Ala.-based Education Corporation of America (ECA) is a category leader in the post-secondary career school market with current enrollment of over 30,000 students. With the completion of the Kaplan transaction, ECA holdings now include Virginia College, Golf Academy of America, Ecotech Institute, Kaplan College, Kaplan Career Institute, TESST College of Technology, Texas School of Business and the fully online New England College of Business which is accredited by the New England Association of Schools and Colleges (NEASC). As noted, the newly acquired campuses of the Kaplan College portfolio will be rebranded under a new name to be revealed in the coming weeks. ECA career colleges are accredited by the Accrediting Council for Independent Colleges and Schools (ACICS) which is listed as a nationally recognized accrediting agency by the U.S. Department of Education and is recognized by the Council for Higher Education Accreditation (CHEA).
SOURCE Education Corporation of America