* Apax Partners to buy business for $305 mln
* Sale includes INSEEC Group, International University of
* Career Education shares rise more than 50 pct after-hours
Oct 24 Career Education Corp said it
will sell its European education business to private equity firm
Apax Partners for about $305 million, sending its shares up more
than 50 percent in extended trading on Thursday.
The deal - valued at more than Career Education's market
capitalization - includes its entire international schools
business, comprising the Paris-based INSEEC Group and the
International University of Monaco.
The company said it plans to use the proceeds from the deal
to concentrate on growing its business in the United States.
"It will help us best serve the vast majority of our
students, who are U.S.-based," Chief Executive Scott Steffey
said in a statement.
As well as battling losses and falling enrollment, the $25
billion U.S. for-profit education industry has been stung by
government investigations into high student-debt loads and low
Career Education agreed in August to pay $10.25 million to
settle a New York state probe into accusations that it had
inflated job placement rates to attract students.
However, University of Phoenix owner Apollo Group Inc
said this week that the rate at which student
enrollments were falling had slowed in the quarter ended Sept.
Career Education will receive about $276.5 million when the
deal closes, taking into account various adjustments, the
company said on Thursday.
Morgan Stanley & Co LLC acted as Career Education`s
financial adviser for the deal.
The company's shares, which have gained about 14 percent in
the past year, were trading at $5.90 at 06.19 p.m. ET, after
closing at $3.80 on the Nasdaq.
At $3.80, the company had a market value of about $255