NEW YORK (TheStreet) --Shares of Apollo Education (APOL) are climbing by 26.44% to $8.79 at the start of trading on Monday morning, after the private education provider announced it will be taken private by a consortium of investors for $1.1 billion.
The investors include The Vistria Group, funds affiliated with Apollo Global Management (APO), and Najafi Companies. The consortium will pay $9.50 per share in cash for Apollo's class A and B shares.
"The Apollo Education Group board of directors reviewed strategic alternatives and believes this transaction is in the best interest of all shareholders and strongly supports our transformation efforts," Apollo CEO Greg Cappelli said in a statement announcing the deal.
The company is expecting the transaction to be completed by its fiscal year end in August.
"This new structure will allow Apollo Education Group the flexibility and runway it needs to complete the transformational plan at University of Phoenix, which will enable us to serve our students more effectively during a period of unprecedented volatility within our industry," Cappelli added.
Separately, TheStreet Ratings has set a "sell" rating and a score of D+ on Apollo Education stock. This is driven by multiple weaknesses, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers.
The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: APOL