Strayer Education, Capella Announce All-stock Merger - Quick Facts

(RTTNews) - Strayer Education, Inc. (STRA) and Capella Education Company (CPLA) announced an all-stock merger of equals transaction, under which Capella shareholders will receive 0.875 Strayer shares for each Capella share. Strayer shareholders will own approximately 52% and Capella shareholders will own approximately 48% of the combined company on a fully diluted basis. The implied equity value of the combined company is approximately $1.9 billion. Strayer will be the remaining corporate entity under which both universities will operate.

Robert Silberman will be Executive Chairman, Kevin Gilligan will be Vice Chairman, and Karl McDonnell will be CEO of the combined entity. Strayer Education, Inc. will be renamed Strategic Education, Inc. Strayer's Board will be increased to 12 directors - with three to be nominated by Capella.

Strayer University and Capella University will continue to operate as independent and separately accredited institutions.