DeVry Education (DV) Subsidiary Closes ACAMS Acquisition

Acquisitions offer long-term growth opportunities for companies like DeVry Education Group, Inc. DV. Such acquisitions enable the companies to grow and diversify into new program areas, levels and geographical locations, and build high-quality brands to compete in an increasingly competitive market.

On Jul 1, 2016, DeVry's subsidiary, Becker Professional Education closed its acquisition of the Association of Certified Anti-Money Laundering Specialists (ACAMS) for $330 million. ACAMS will report under Becker Professional Education, which is a part of DeVry Group's International and Professional Education segment.

ACAMS is an international membership organization, owned by global private equity firm Warburg Pincus. ACAMS provides online and in-person training in skills related to anti-money laundering (AML) and financial crime prevention. The institution offers credentialing through its CAMS certification, conferences, and risk assessment tools. ACAMS is expected to generate revenues in the low $40 million range in fiscal 2017.

The acquisition strengthens DeVry's portfolio by adding a career oriented program that has strong demand in the job market. Also, it will extend Becker's geographic presence as about 40% of ACAMS' revenues are generated outside Becker's global footprint. Over the near term, DeVry is looking for acquisitions in the fields of health care, professional and international education. This strategy is similar to another education company American Public Education, Inc. APEI which acquired Hondros College, Nursing Programs in Nov 2013.

Another player in the same space, Capella Education Company CPLA also resorts to acquisitions to drive growth. It acquired Hackbright Academy on Apr 22, a provider of non-degree software engineering. The new non-degree programs focus on bridging the skill gap in the market and should appeal to working adults as well as employers, thereby driving the company's top line in the near future.

Meanwhile, another education company, Apollo Education Group, Inc. APOL signed a definitive agreement to be acquired by a consortium of investors for about $1.1 billion on Feb 8. These investors include Chicago-based investment company, The Vistria Group, LLC; funds affiliated with Apollo Global Management, LLC APO, one of the leading global alternative investment manager;  and Najafi Companies, an Arizona-based investment firm. If the deal gets all the necessary approvals, the transaction is expected to close in Aug 2016.

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