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Apollo Global Management, the holding company for the for-profit University of Phoenix, and the Vistria Group are considering the possibility of an initial public offering, Bloomberg reported.
A potential IPO could launch by the third quarter (July–September), sources told Bloomberg.
The move comes amid a slow-moving deal to sell the University of Phoenix to the University of Idaho, which met scrutiny from state lawmakers over the $685 million price tag, Phoenix’s troubled history and questions about the necessity of acquiring the online institution.
The deal has been in the works since early 2023, around the same time that the University of Arkansas system rejected plans to buy Phoenix. University of Idaho officials initially intended to close the deal by May 31, 2024. However, the two parties agreed to extend that deadline to June 10, 2025. The revised agreement has a nonexclusivity provision, meaning Apollo can shop the University of Phoenix to other potential buyers while negotiating with Idaho. According to the terms of the revised agreement, Idaho will receive $15 million if another buyer purchases Phoenix.
“We know that the University of Phoenix creates substantial value and is getting stronger every day,” a University of Idaho spokesperson wrote to Course Strat by email. “Our amended agreement allows the University of Phoenix to explore other possible partners as we continue to seek viable pathways for the deal to move forward. Under the revised agreement, if the University of Phoenix did pursue another transaction, the University of Idaho would benefit from and receive a substantial fee, should that other transaction materialize.”
