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Apollo Education Group, Inc. is an American
corporation A corporation or body corporate is an individual or a group of people, such as an association or company, that has been authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and public law as ...
based in the South Phoenix area of
Phoenix, Arizona Phoenix ( ) is the List of capitals in the United States, capital and List of cities and towns in Arizona#List of cities and towns, most populous city of the U.S. state of Arizona. With over 1.6 million residents at the 2020 census, it is the ...
, with an additional corporate office in Chicago, Illinois. It is privately-owned by a consortium of investors including The Vistria Group, LLC and funds affiliated with
Apollo Global Management Apollo Global Management, Inc. is an American asset management firm that primarily invests in alternative assets. , the company had $548 billion of assets under management, including $392 billion invested in credit, including mezzanine capita ...
, LLC. The company owns and operates the
University of Phoenix University of Phoenix (UoPX) is a Private university, private For-profit higher education in the United States, for-profit university headquartered in Phoenix, Arizona. Founded in 1976, the university confers certificates and degrees at the Ac ...
and has previously owned enterprises including BPP Holdings in the United Kingdom, University for the Arts, Sciences, and Communication in Santiago, Chile, and Universidad Latinoamericana in Mexico.


History


Founding

Apollo Education Group, Inc. was founded in 1973 by
John Sperling John Glen Sperling (January 9, 1921 – August 22, 2014) was an American billionaire businessman who is credited with having led the contemporary for-profit education movement in the United States The fortune he amassed was based on his founding ...
and John D. Murphy.


Apollo Group as a Publicly Traded Corporation (1994–2016)

Corporate revenues for the year ending August 31, 2005 were $2.251 billion. In 2008, Apollo Group formed a joint venture with
Carlyle Group The Carlyle Group Inc. is an American multinational company with operations in private equity, alternative asset management and financial services. As of 2023, the company had $426 billion of assets under management. Carlyle specializes in ...
, called Apollo Global, to make international acquisitions. Apollo also purchased schools in Mexico and Chile As of 5 October 2011, Apollo Group had a
market capitalization Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by ...
of $5.36 billion and a price-to-earnings ratio of 13.22.


Declining revenues

The Apollo Group announced quarterly results on 30 June 2011. The company reported $1.45 in
earnings per share Earnings per share (EPS) is the monetary value of earnings per outstanding share of common stock for a company during a defined accounting period, period of time, often a year. It is a key measure of corporate profitability, focusing on the inte ...
for the previous quarter, exceeding the
Thomson Reuters Thomson Reuters Corporation ( ) is a Canadian multinational corporation, multinational content-driven technology Conglomerate (company), conglomerate. The company was founded in Toronto, Ontario, Canada, and maintains its headquarters at 1 ...
estimate of $1.33 by $0.12. Apollo Group's quarterly revenue was down 7.6% on a year-over-year basis. In March 2011 the Apollo Group sold its corporate headquarters in Arizona and leased it back in order to raise $170 million in cash. The deal with Cole Real Estate Investments included a 20-year lease requiring Apollo to remain in the complex. "In our view, it does not change the view of the company. Apollo isn't hungry for cash: It carries little debt but generates $4 billion in revenue and has $650 million in net income and $1.5 billion in cash on its balance sheet", commented Peter Wahlstrom of Morningstar, an investment-research company. Revenue of the company continued to fall: in the fiscal year ending on August 31, 2011, the net revenue was $4.7 billion; in 2012, $4.2 billion; in 2013, $3.6 billion. The operating income during this period fell from $956 million in 2011, to $676 million in 2012, to $427 million in 2013. The company attributed this to a decline in enrollment, with degreed enrollment declining from 380,000 in 2011, to 328,000 in 2012, to 269,000 in 2013.Goldie Blumenstyk, "Apollo Group Plans to Lay Off 500, as Does Education Management Corp." ''Chronicle of Higher Education'' Oct 23, 201

In 2015, co-founder John D. Murphy argued that Apollo Group "lost its direction when it abandoned its roots, which were serving working adults, not recent high school graduates."


Asset under Apollo Global Management (2016–present)

On May 6, 2016, the shareholders of the company approved the sale of the firm for $1.14 billion to a group of private investors:Nick DeSantis "Shareholders Approve $1.14-Billion Sale of U. of Phoenix Parent" ''Chronicle of Higher Education'' May 6, 201

accessed May 13, 2016
Najafi Companies, a Phoenix firm, the New York-based Apollo Global Management and, the Vistria Group of Chicago.R. J. Hansen "University of Phoenix investors OK sale to private backers" ''Arizona Republic'' May 9, 201

accessed May 13, 2016
The offer amounted to $10 per share, compared to its high of $89/share in 2009. The delisting was completed on February 1, 2017. The amount of lobbyists for Apollo Education Group was reduced from 27 in 2018 to 10 in 2021. In March 2022, Pearson rejected a £7bn takeover bid from Apollo Global Management. Anthony W. Miller is Apollo Education Group's chairman.


Schools and subsidiaries


University of Phoenix

The
University of Phoenix University of Phoenix (UoPX) is a Private university, private For-profit higher education in the United States, for-profit university headquartered in Phoenix, Arizona. Founded in 1976, the university confers certificates and degrees at the Ac ...
is a wholly owned subsidiary of the Apollo Education Group. The University of Phoenix is one of the largest higher education providers in North America. The university has approximately 40 campuses and confers degrees in over 100 degree programs at the associate,
bachelor's A bachelor's degree (from Medieval Latin ''baccalaureus'') or baccalaureate (from Modern Latin ''baccalaureatus'') is an undergraduate degree awarded by colleges and universities upon completion of a course of study lasting three to six years ( ...
, master's and
doctoral A doctorate (from Latin ''doctor'', meaning "teacher") or doctoral degree is a postgraduate academic degree awarded by universities and some other educational institutions, derived from the ancient formalism '' licentia docendi'' ("licence to teach ...
levels.University of Phoenix provides growth opportunities for working adults
Lee Allen. Retrieved 18 September 2008.
The University of Phoenix has an open enrollment admission policy only requiring a high-school diploma, GED, or an equivalent qualification. The school also provides associate or bachelor's degree applicants opportunity for advanced placement through its prior learning assessment, through which, aside from previous coursework, college credit can come from experiential learning essays, corporate training, and certificates or licenses. University of Phoenix students owe more than $35 billion in student loan debt, the most of any US college. In 2014, University of Phoenix was highlighted in a Time.com article titled "The 5 Colleges That Leave the Most Students Crippled By Debt".


Apollo Global (later known as Vanta Education)

Apollo Group formed Apollo Global to manage and form subsidiaries, assets, and holdings overseas. As part of their first acquisitions, Apollo Global acquired University for the Arts, Sciences, and Communication (UNIACC) in
Chile Chile, officially the Republic of Chile, is a country in western South America. It is the southernmost country in the world and the closest to Antarctica, stretching along a narrow strip of land between the Andes, Andes Mountains and the Paci ...
as well as the now defunct Meritus University in Canada. Apollo Global is a joint venture between the Apollo Group and the Carlyle Group. The two partners invested $1 billion in Apollo Global. The Apollo Group invested roughly $801 million and owns 80.1% of the new company. Carlyle invested $199 million and controls the remaining shares. Apollo Global replaced Apollo International. Apollo Global changed its name to Vanta Education. Its current holdings are BPP, FAEL, Open Colleges, and ULA.


BPP Holdings

BPP Holdings is a holding company of the United Kingdom-based provider of professional and academic education. The company is divided into BPP Learning Media, BPP Professional Education and BPP University. BPP University is a United Kingdom degree-awarding body with four schools: BPP Business School, BPP Law School, BPP School of Health and BPP School of Foundation and English Language Studies. Apollo Global acquired BPP Holdings (which includes
BPP University BPP University is a Private university#United Kingdom, private university in the United Kingdom. Running courses in law, accountancy, business, nursing, and technology, the for-profit institution is currently a part of BPP Holdings, BPP Educ ...
) in the United Kingdom for $607 million in July 2009.


Universidad Latinoamericana, Mexico (sold in 2019)

The Universidad Latinoamericana in
Mexico Mexico, officially the United Mexican States, is a country in North America. It is the northernmost country in Latin America, and borders the United States to the north, and Guatemala and Belize to the southeast; while having maritime boundar ...
was acquired by the Apollo Group in 2007, and sold in 2019


Faculdade Educacional da Lapa (FAEL)


Open Colleges, Australia

Open Colleges in
Australia Australia, officially the Commonwealth of Australia, is a country comprising mainland Australia, the mainland of the Australia (continent), Australian continent, the island of Tasmania and list of islands of Australia, numerous smaller isl ...
was acquired for a 70% share agreement by the Apollo Group in 2013.


Bridge School of Management


Milpark Education

Apollo Group announced in August 2011 a $75 million deal to buy Carnegie Learning along with a separate agreement to acquire related technology from CMU for $21.5 million, to be paid over 10 years.


Aptimus Marketing

In 2007, Apollo Group purchased Aptimus for $48 million. Aptimus was a full-service, in-house marketing agency for Apollo Group education institutions, including the University of Phoenix, Axia College, the Institute for Professional Development, Olympus High School, and Insight School.


Orange Lutheran Online

Lutheran High School of Orange County (LHSOC) licenses its name to the Apollo Group to offer online courses.


Sold or closed operations


Meritus University (closed 2011)

Apollo Group owned and operated Meritus University in Canada. On January 24, 2011, citing how "enrollment will continue to be insufficient to sustain the required quality academic and student service infrastructure we and our students demand," Meritus University announced its closure, with their last classes taking place on March 14, 2011.


Insight Schools (sold 2011)

Insight Schools is an online high school offering classes from 9th to 12th grade. Insight both ran high schools for school districts and operated online schools in several U.S. states. Apollo Group acquired Insight Schools in 2007; in 2011 Apollo Group sold Insight Schools to Kaplan, Inc.


The Iron Yard (closed 2017)

On June 11, 2015, Apollo Education Group acquired a 62% interest in TIY Academy, LLC ("The Iron Yard"), a provider of nondegree information technology bootcamp programs in the United States, for $15.9 million. The Iron Yard subsidiary closed all campuses in 2017 and ceased operations early in 2018.


College of Financial Planning (sold 2017)

The College of Financial Planning was acquired by Apollo in 1997 and sold to Kaplan in December 2017.


Carnegie Learning (sold 2018)

Carnegie Learning is a publisher of
math Mathematics is a field of study that discovers and organizes methods, Mathematical theory, theories and theorems that are developed and Mathematical proof, proved for the needs of empirical sciences and mathematics itself. There are many ar ...
curricula for
middle school Middle school, also known as intermediate school, junior high school, junior secondary school, or lower secondary school, is an educational stage between primary school and secondary school. Afghanistan In Afghanistan, middle school includes g ...
,
high school A secondary school, high school, or senior school, is an institution that provides secondary education. Some secondary schools provide both ''lower secondary education'' (ages 11 to 14) and ''upper secondary education'' (ages 14 to 18), i.e., ...
, and post-secondary students. The company uses a blended approach, with a textbook and software (called Cognitive Tutor) for each subject. The company also produces products for the
homeschool Homeschooling or home schooling (American English), also known as home education or elective home education (EHE) (British English), is the education of school-aged children at home or a variety of places other than a school. Usually conducted ...
and tutoring markets. Based in
Pittsburgh, Pennsylvania Pittsburgh ( ) is a city in Allegheny County, Pennsylvania, United States, and its county seat. It is the List of municipalities in Pennsylvania#Municipalities, second-most populous city in Pennsylvania (after Philadelphia) and the List of Un ...
, Carnegie Learning was founded by cognitive science researchers from
Carnegie Mellon University Carnegie Mellon University (CMU) is a private research university in Pittsburgh, Pennsylvania, United States. The institution was established in 1900 by Andrew Carnegie as the Carnegie Technical Schools. In 1912, it became the Carnegie Institu ...
in conjunction with veteran mathematics teachers. All of the Cognitive Tutor curricula are based on extensive scientific research from
Carnegie Mellon University Carnegie Mellon University (CMU) is a private research university in Pittsburgh, Pennsylvania, United States. The institution was established in 1900 by Andrew Carnegie as the Carnegie Technical Schools. In 1912, it became the Carnegie Institu ...
, along with field tests in schools throughout the United States. The Cognitive Tutors are based on the
ACT-R ACT-R (pronounced /ˌækt ˈɑr/; short for "Adaptive Control of Thought—Rational") is a cognitive architecture mainly developed by John Robert Anderson and Christian Lebiere at Carnegie Mellon University. Like any cognitive architecture, ACT ...
theory of learning, memory and performance. The Tutors themselves were developed using an empirical testing process.


Western International University (closed, 2019)

Western International University (West) was a university offering online and in person classroom programs for adult learners. Founded in 1978, West offered associate, bachelor's and master's degree programs to approximately 1,374 students (Fall 2014). West's mission is to provide a broad educational foundation, with a focus on business and technology, designed to prepare students for leadership positions in a dynamic, global marketplace. West was formerly located in Phoenix, Arizona and was more recently located in
Tempe, Arizona Tempe ( ; ''Oidbaḍ'' in O'odham language, O'odham) is a city in Maricopa County, Arizona, United States, with the Census Bureau reporting a 2020 population of 180,587. The city is named after the Vale of Tempe in Greece. Tempe is located in t ...
. West offered in person classroom teachings and online education. The university started shutting down in March 2017 and developed a two year "teaching out" plan to allow students an opportunity to graduate from West or transfer to another institution. The school ceased all operations and officially closed in February 2019.


Lawsuits and financial reporting

After a separate investigation in 2004, the Apollo Group paid about $10 million in fines to the U.S. Department of Education, which had criticised UoP's admissions practices: for example, recruiters were paid bonuses depending on the numbers they signed up. "In 2004, a scathing report issued by the US Department of Education concluded that Phoenix, as ''
The Chronicle of Higher Education ''The Chronicle of Higher Education'' is an American newspaper and website that presents news, information, and jobs for college and university faculty and student affairs professionals, including staff members and administrators. A subscription ...
'' put it, had a 'high-pressure sales culture' that intimidated recruiters who failed to meet targets and encouraged the enrollment of unqualified students—in short that it rewarded 'the recruiters who put the most "asses in classes. Apollo illegally withheld the report, but it was leaked and the group's value on the stock market crashed. A suit was brought alleging that its management had 'disseminated materially false and misleading financial statements in an effort to inflate its stock price and attract investors'." "In 2006, the company's controller and chief accounting officer resigned amid allegations that the books had been cooked; in 2007, the Nasdaq Listing and Hearing Review Council threatened to withdraw Apollo's listing from the stock exchange." In January 2008, the above stock-price suit was decided. Apollo was found liable for misleading investors by failing to disclose the Department of Education report that criticized the University of Phoenix's recruiting practices. The jury awarded the shareholders $280 million in damages. The trial judge vacated the verdict and found for the defendants, but the Ninth Circuit reinstated the verdict. The U.S. Supreme Court declined to hear Apollo's appeal of the verdict. The case ultimately resolved with Apollo being liable for $145 million; the reported $280 million figure may have been an error because the jury's award was for $5.55 per share. In November 2008, Apollo paid $1.89 million to settle a religious discrimination class action without admitting wrongdoing. The
Equal Employment Opportunity Commission The U.S. Equal Employment Opportunity Commission (EEOC) is a federal agency that was established via the Civil Rights Act of 1964 to administer and enforce civil rights laws against workplace discrimination. The EEOC investigates discrimination ...
had brought the claim on behalf of non-Mormon employees of University of Phoenix Online. Under the settlement, University of Phoenix Online agreed to prohibit favoritism toward
the Church of Jesus Christ of Latter-day Saints The Church of Jesus Christ of Latter-day Saints, informally known as the LDS Church or Mormon Church, is a Nontrinitarianism, nontrinitarian Restorationism, restorationist Christianity, Christian Christian denomination, denomination and the ...
. In July 2015, Apollo announced the
Federal Trade Commission The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) United States antitrust law, antitrust law and the promotion of consumer protection. It ...
(FTC) was investigating UoP for unfair business practices; "The company must hand over documents regarding matters that include its marketing, tuition, billing, accreditation, and military recruitment practices going back as far as 2011." In January 2016, the FTC filed suit against Apollo and University of Phoenix. The court ordered Apollo and UoP to comply with the FTC's civil investigative demands.


References


External links


Official website
{{authority control, state=expanded Companies formerly listed on the Nasdaq Education companies established in 1973 Companies based in Phoenix, Arizona Educational organizations established in 1973 Education companies of the United States 1973 establishments in Arizona * 2017 mergers and acquisitions Private equity portfolio companies