The Advisory Board Company ABCO agreed to pay $850 million in cash and stock to acquire Royall & Company, a company that provides enrollment software to the higher education industry.
Advisory Board, which offers software and consulting to the health are and education industries, said the price for Royall & Co. includes $750 million in cash and $100 million in stock.
The acquisition of Royall is expected to boost Advisory's 2015 adjusted earnings by $0.10 a share, and is slated to close in January.
Funding includes a new, $725 million term loan and an undrawn $50 million revolving credit facility, along with $65 million of cash on hand.
Advisory Board will also issue between 2.4 million and 2.8 million shares as part of the transaction.
In after-hours trading, Advisory Board was nearly unchanged at $37.76.
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