NEW YORK (TheStreet) -- Apollo Education Group (APOL) stock is surging by 16.14% to $7.41 in morning trading on Tuesday, as the education provider is in advanced discussions about an acquisition by private-equity firm Apollo Global Management, the Wall Street Journal reported.
A deal worth about $1 billion could be reached within the next few weeks, sources told the Journal.
Apollo Education is in discussions that "could potentially lead to a change of control of the company," the company confirmed to the Journal without naming a potential buyer or revealing further details.
Companies within the for-profit college industry such as Apollo Education have struggled in recent years. Enrollment to institutions such as its own University of Phoenix has fallen as the organizations' recruitment, career outcomes and student-loan defaults rates are scrutinized, according to the Journal.
Yesterday, the company announced that degreed enrollment at the University of Phoenix declined by 20.3% to 183,800 students for the fiscal 2016 first quarter, compared to the year-ago period. New enrollments were down 38.1%.
Additionally, Apollo Education Group reported fiscal 2016 first quarter earnings of 29 cents per share on $586.02 million in revenue on Monday. Analysts had forecast for earnings of 31 cents per share on $610.42 million in revenue for the quarter ended November 30.