Apollo Education Group to Eliminate Mandatory Arbitration Clauses
May 19 2016 - 09:15AM
Business Wire
Apollo Education Group, Inc. (NASDAQ: APOL) today announced
that effective July 1, 2016, University of Phoenix and Western
International University, two of its U.S.-based universities, will
eliminate the use of mandatory arbitration clauses in its students’
enrollment agreements. This will be consistent with its current
practice at two of Apollo’s other institutions, College for
Financial Planning and The Iron Yard, which do not have such
clauses.
Greg Cappelli, Chief Executive Officer of Apollo Education
Group, commented, “We have worked hard to further improve the
student experience at all of our institutions, and it’s clear that
eliminating mandatory arbitration is the right choice for all of
our students.” Cappelli continued, “This decision joins with a host
of efforts already underway to improve student outcomes, aligns all
of our U.S.-based colleges under a standard student practice, and
comes with the full support of our prospective new owners.”
Earlier this month, Apollo Education Group shareholders approved
the merger agreement to be acquired by the Consortium of Investors
including The Vistria Group, LLC, funds affiliated with Apollo
Global Management, LLC (NYSE: APO) and the Najafi Companies. The
transaction is subject to financial, operational and customary
closing conditions. It is also subject to foreign and domestic
regulatory conditions and approvals, including by the U.S.
Department of Education, the Higher Learning Commission, and state
regulatory and programmatic accreditation bodies. The acquisition
is expected to be completed by year-end 2016.
About Apollo Education Group, Inc.
Apollo Education Group, Inc. is one of the world’s largest
private education providers, serving students since 1973. Through
its subsidiaries, Apollo Education Group offers
undergraduate, graduate, professional development and other
non-degree educational programs and services, online and on-campus
principally to working learners. Its educational programs and
services are offered throughout the United States and
in Europe, Australia, Latin
America, Africa and Asia, as well as online
throughout the world. For more information about Apollo
Education Group, Inc. and its subsidiaries, call (800)
990-APOL or visit the Company’s website
at www.apollo.edu.
Forward-Looking Statements Safe Harbor
Statements about Apollo Education Group and its business in this
release which are not statements of historical fact, including
statements regarding Apollo Education Group's future strategy and
plans and commentary regarding future results of operations and
prospects, are forward-looking statements and are subject to the
Safe Harbor provisions created by the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
current information and expectations and involve a number of risks
and uncertainties. Actual plans implemented and actual results
achieved may differ materially from those set forth in or implied
by such statements due to various factors, including, without
limitation: (i) the timing of the completion of the merger; (ii)
the failure of Parent to obtain the necessary equity financing set
forth in the equity commitment letters received in connection with
the merger agreement or the failure of that financing to be
sufficient to complete the merger and the transactions contemplated
thereby; (iii) the inability to complete the merger due to the
failure to obtain shareholder approval or the failure to satisfy
other conditions to completion of the merger, including receipt of
required regulatory approvals; (iv) the risk that regulatory
agencies impose restrictions, limitations, costs, divestitures or
other conditions in connection with providing regulatory approval
of the merger; (v) the outcome of pending or potential litigation
or governmental investigations; (vi) disruptions resulting from the
proposed merger making it more difficult for Apollo Education Group
to maintain relationships with its students, customers, employees,
suppliers and strategic partners; (vii) competitive responses to
the proposed merger; (viii) unexpected costs, liabilities, charges
or expenses resulting from the merger; (ix) the inability to
obtain, renew or modify permits in a timely manner, or comply with
government regulations; (x) the inability to retain key personnel
of Apollo Education Group or its subsidiaries; (xi) the occurrence
of any event, change or other circumstance that could give rise to
the termination of the merger agreement, including a termination of
the merger agreement under circumstances that could require Apollo
Education Group to pay a termination fee; (xii) unexpected expenses
or other challenges in integrating acquired businesses, student,
consumer or regulatory impact arising from consummation of such
acquisitions, and unexpected changes or developments in the
acquired businesses; (xiii) diversion of management’s attention
from ongoing business concerns; (xiv) limitations placed on Apollo
Education Group’s ability to operate its business by the merger
agreement; (xv) the impact of increased competition from
traditional public universities and proprietary educational
institutions; (xvi) the impact of the initiatives to transform the
University of Phoenix into a more-focused, higher-retaining and
less-complex institution, including the near-term impact on
enrollment; (xvii) the impact of Apollo Education Group’s ongoing
restructuring and cost-reduction initiatives; (xviii) impacts from
actions taken by our regulators that could affect the University of
Phoenix’s eligibility to participate in or the manner in which it
participates in U.S. Federal and state student financial aid
programs, including the recent requirement that all substantial
changes be approved by the U.S. Department of Education in advance;
(xix) further delay in the University of Phoenix’s pending
recertification by the U.S. Department of Education for
participation in Title IV student financial aid programs, or any
limitations or qualifications imposed in connection with any
recertification; (xx) the impact of any reduction in financial aid
available to students, including active and retired military
personnel, due to the U.S. government deficit reduction proposals,
debt ceiling limitations, budget sequestration or otherwise; (xxi)
changes in regulation of the U.S. education industry and
eligibility of proprietary schools to participate in U.S. Federal
student financial aid programs; (xxii) changes in the University of
Phoenix’s enrollment or student mix; (xxiii) the impact on student
enrollments of the announcement of the proposed merger and general
economic conditions; (xxiv) the impact of third party claims that
Apollo Education Group’s products and services infringe their
intellectual property rights; and (xxv) fluctuations in non-U.S.
currencies that could impact reported operating results of foreign
subsidiaries. For a discussion of the various factors that may
cause actual plans implemented and actual results achieved to
differ materially from those set forth in the forward-looking
statements, please refer to the risk factors and other disclosures
contained in Apollo Education Group's Form 10-K for fiscal year
2015, filed with the Securities and Exchange Commission (the “SEC”)
on October 22, 2015, Form 10-Q for the quarterly period ended
November 30, 2015, filed with the SEC on January 11, 2016, and
other filings with the SEC which are available at www.apollo.edu.
The cautionary statements referred to above also should be
considered in connection with any subsequent written or oral
forward-looking statements that may be issued by Apollo Education
Group or persons acting on Apollo Education Group's behalf. Apollo
Education Group undertakes no obligation to publicly update or
revise any forward-looking statements for any facts, events, or
circumstances after the date hereof that may bear upon
forward-looking statements. Furthermore, Apollo Education Group
cannot guarantee future results, events, levels of activity,
performance, or achievements.
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version on businesswire.com: http://www.businesswire.com/news/home/20160519005799/en/
Apollo Education Group, Inc.InvestorsBeth Coronelli,
312-660-2059beth.coronelli@apollo.eduorMediaRyan Rauzon,
602-363-1022ryan.rauzon@apollo.edu
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