Sard Verbinnen & Co. is repping Strayer Education Inc. as it announced a “merger of equals” with Capella Education, another “for profit” college chain, via an exchange of stock that will give Strayer investors a 52 percent stake in the combine.
The new entity will operate under the Strayer corporate name, serve 80,000 students, and benefit from a cost-savings of $50M per-year phased in over the next 18 months.
Strayer CEO Karl McDonnell will helm the resulting corporation with Strayer University and Capella University as independent and separately accredited institutions.
Herndon-based Strayer earned $27.1M during the nine-month period ending Sept. 30 on revenues of $336M. Capella weighed in with $30.8M net and $329.4M revenues in the same period.
Sard Verbinnen’s David Reno, Andy Duberstein and Bryan Locke and Capella’s Mike Buttry handle media for the transaction that is expected to close a year from now.