Item 1.01 Entry into a Material Definitive Agreement.
On April 12, 2019, Adtalem Global Education Inc. (“Adtalem”), entered into a Membership Interests Purchase Agreement (the
“Purchase Agreement”) with OCL Financial Services LLC, a Delaware limited liability company (“OCL FS”) and OCL Professional Education, Inc., a Delaware corporation (“Seller”), pursuant to which Adtalem agreed to purchase all of the membership
interests of OCL FS from Seller. OCL FS offers education and compliance solutions courses in the field of financial services.
Subject to the terms and conditions of the Purchase Agreement, at the closing of the transaction, Adtalem will pay
consideration of $121,000,000 in cash to Seller, subject to adjustments for working capital, cash, indebtedness and transaction expenses, to acquire all of the membership interests of OCL FS (the “Transaction”).
The completion of the Transaction is subject to customary closing conditions, including: (1) the expiration or early
termination of the waiting period applicable to the completion of the Transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended; (2) the absence of law prohibiting, or any order, injunction or other legal or regulatory
restraint or prohibition preventing the Transaction; (3) subject to certain materiality and other qualifications, the accuracy of certain representations and warranties made by each of Adtalem, OCL FS and Seller, respectively, as of the date of the
Purchase Agreement and the date of the closing of the Transaction; and (4) the performance in all material respects by each of Adtalem and Seller, respectively, of its obligations under the Purchase Agreement.
The Purchase Agreement contains customary representations, warranties and covenants, including among other covenants,
providing that both parties use their respective best efforts to obtain regulatory approvals and for OCL FS and Seller to operate OCL FS’s business in the ordinary course of business consistent with past practice and to use commercially reasonable
efforts to preserve the present business operations, organization and goodwill of OCL FS.
The Purchase Agreement includes customary termination provisions in favor of Adtalem on the one hand, and Seller on the other
hand. Both Adtalem and Seller have the right to terminate the Purchase Agreement if the closing of the Transaction has not occurred by September 30, 2019, subject to a limited automatic extension of nine months. The Purchase Agreement further
provides that upon termination of the Purchase Agreement under certain limited circumstances, Adtalem will be required to pay Seller a termination fee of $5,000,000.
Both Adtalem and Seller have agreed, subject to certain limitations, to indemnify the other party for losses arising from
certain breaches of the Purchase Agreement.
The Purchase Agreement is included with this filing only to provide investors with information regarding the terms of the
Purchase Agreement, and not to provide investors with any other factual information regarding Adtalem or OCL FS. Investors should not rely on the representations, warranties and covenants or descriptions thereof as characterizations of the actual
state of facts or condition of Adtalem or any of its subsidiaries or affiliates. The information concerning the subject matter of the representations and warranties may change after the date of the Purchase Agreement.
The foregoing description of the Purchase Agreement and the Transaction does not purport to be complete and is subject to,
and qualified in its entirety by, the full text of the Purchase Agreement attached as Exhibit 2.1 hereto and incorporated herein by reference.