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Adtalem lists DeVry University under discontinued ops following proposed sale

Adtalem Global Education on Feb. 2 released unaudited consolidated statements of income to reflect DeVry University, one of the institutions it owns and operates, as discontinued operations.

The move follows Adtalem's proposed sale of DeVry University to Cogswell Education LLC. On Dec. 4, 2017, Adtalem entered into a stock purchase agreement in which it agreed to sell DeVry University to Cogswell Education LLC for de minimis consideration. It committed to transferring the university with a minimum capital balance of $7.5 million, subject to increase under conditions to up to $20.1 million based on student census reductions. The agreement, which is expected to close early in fiscal 2019, includes an earn-out that entitles Adtalem to payments of up to $20 million paid over a 10-year period based on the university's free cash flow.

In the Feb. 2 filing, the company said the divestment was based on changes in its strategic direction for its portfolio of institutions. Adtalem said the statements in the unaudited information are in line with the discontinued operations disclosure requirements for the previously reported fiscal years ended June 30, 2016 and June 30, 2107, as well as the previously reported quarters in fiscal 2017 and the first quarter in fiscal 2018.