Apollo Up 28% After Announcing It Will Be Acquired

Shares of Apollo Education Group Inc (NASDAQ: APOL) gained 28 percent early Monday morning after the company confirmed it will be taken private in a transaction which values the company at $1.1 billion.

Apollo Education reported that it has agreed to sell itself to a consortium of investors for $9.50 per share in cash for both its Class A and Class B shares. The consortium of investors includes The Vistria Group, funds affiliated with Apollo Global Management LLC (NYSE: APO) and Najafi Companies.

Shares of Apollo Education closed at $6.95 on Friday.

The purchase price implies a premium of 30 percent over Apollo Education's 30-day volume weighted average stock price and a 44 percent premium to the closing price on January 8 - the day in which the company's Board of Directors announced it is exploring strategic alternatives.

Tony Miller, Chief Operating Officer and Partner of The Vistria Group and former Deputy Secretary of the U.S. Department of Education will become Chairman of the Apollo Education Group Board once the transaction is completed.

"The Apollo Education Group Board of Directors reviewed strategic alternatives and believes this transaction is in the best interest of all shareholders and strongly supports our transformation efforts," said Greg Cappelli, Chief Executive Officer of Apollo Education Group. "This new structure will allow Apollo Education Group the flexibility and runway it needs to complete the transformational plan at University of Phoenix, which will enable us to serve our students more effectively during a period of unprecedented volatility within our industry. We will also continue to expand our international operations and remain committed to driving principles of operating excellence."