The parent company of DeVry University and its Keller Graduate School of Management has agreed to transfer ownership of the institutions to Cogswell Education, a for-profit higher education provider based in California.
In an email to the DeVry community sent Monday afternoon, Lisa Wardell, the President and CEO of Adtalem Global Education, DeVry’s parent company, wrote:
“The new ownership structure will give DeVry University the flexibility to further pursue its growth strategy and academic goals, and provides colleagues and faculty a fresh start to succeed with institutional objectives, while maintaining a focus on students and their ability to achieve their career goals.”
Terms of the agreement were not disclosed, and a representative from DeVry did not respond to a request for comment Monday. The deal is expected to be completed next year, pending “regulatory and accreditor approval,” according to the email from Wardell.
A statement from Adtalem said that “no consideration will be paid to Adtalem at closing,” but the agreement includes an “earn-out” for the company, which will be based on DeVry’s suture performance.
Wardell pledged a smooth transition process between the owners.
“We will work closely with Cogswell Education over the coming months to finalize the transfer of ownership and ensure a smooth transition for DeVry University, its colleagues and students,” Wardell said in the statement. “Adtalem will now have more ability to focus on its remaining institutions across our three key verticals: medical and healthcare, technology and business, and professional education. Adtalem will always be grateful to DeVry University for our legacy in technology education and leadership in serving the educational needs of new majority students.”
Earlier this year, DeVry agreed to a $455,000 settlement over allegations that it misled students in Massachusetts.
Massachusetts Attorney General Maura Healey said the company advertised that 90 percent of its graduates found relevant jobs within six months of graduation, but Healey found rates as low as 52 percent in some programs. In the settlement, DeVry agreed not to misrepresent employment or earnings data.
Cogswell Education currently owns and operates Cogswell Polytechnical College in San Jose, California. It offers courses in IT, game design, audio production, digital art and business administration.