Perdoceo Education Corporation has agreed to acquire South University in a transaction that could reach approximately $214 million, significantly expanding the company’s graduate health sciences education platform.
Perdoceo plans to acquire 100% of South University Savannah from South University – Member.
The company expects to pay approximately $130 million to $140 million at closing, followed by $18 million of deferred consideration over 24 months and up to $56 million in earn-out payments tied to EBITDA thresholds for fiscal 2027 through 2029.
Using the upper end of the closing consideration, the total potential payment could reach approximately $214 million.
Perdoceo plans to fund the acquisition entirely with cash on hand, and the transaction is not subject to a financing condition.
Founded in 1899, South University operates 11 campuses across Georgia, Florida, Alabama, South Carolina, Virginia, Texas and North Carolina, along with South University Online.
The institution served approximately 10,500 students in 2025 and generated approximately $291 million of unaudited revenue and $34 million of adjusted operating income.
South’s health sciences offerings include physician assistant studies, anesthesiologist assistant education, pharmacy and nursing programs, along with physical therapist assistant, occupational therapy assistant, public health and counseling programs.
Perdoceo plans to invest in clinical placement capacity, preceptor networks, faculty, program leadership, simulation and instructional technology and licensure exam preparation.
The company expects the deal to be immediately accretive to adjusted operating income beginning in 2027 and to contribute additional growth in 2028.
Closing could occur as early as April 2027, subject to regulatory, accreditor and customary approvals.
Perdoceo also reaffirmed its 2026 adjusted operating income outlook of $258 million to $263 million.
KEY QUOTES:
“South University has spent more than a century preparing students for in-demand careers.”
“We intend to invest in clinical capacity, academic and student support services, and transformational initiatives that we believe will further enhance student experiences and academic outcomes at South University.”
Todd Nelson, President and CEO of Perdoceo Education Corporation
