American Public Education, Inc.
) recently entered into an agreement to fully acquire Ohio-based
National Education Seminars, Inc., also known as Hondros College
(Nursing Programs), for $46 million cash. The acquisition is
expected to be completed in the fourth quarter of 2013.
Hondros College operates through four campuses located in
Cincinnati, Columbus, Dayton and Cleveland. More than 1,500
students are offered various nursing programs including diploma
in practical nursing (PN), an associate degree in nursing (ADN)
and an online registered nurse to bachelor of science in nursing
(RN - BSN) completion program.
The acquisition is in line with American Public's long-term
strategic plan of focusing on quality education, improving
student retention and enhancing the quality of health, science
and technology programs. Management believes that the acquisition
will further consolidate APEI's position in the healthcare,
nursing and public education sector.
There is an increasing demand for medical courses due to
improving prospects for doctors and veterinarians. The
acquisition will therefore strengthen APEI's position as a
provider of medical courses and contribute to its revenue growth
in the upcoming quarters. The second-quarter revenues missed the
company's expectation as well the Zacks Consensus Estimate
primarily due to lower-than-expected increase in total student
APEI reported cash and cash equivalents of $128.1 million as of
Jun 30, 2013. The acquisition, expected to be accretive to APEI's
full year 2014 earnings, will leave it with more than $80 million
cash and cash equivalents.
American Public carries a Zacks Rank #3 (Hold).
AMER PUB EDUCAT (APEI): Free Stock Analysis
BRIGHTCOVE (BCOV): Free Stock Analysis Report
POINTS INTL LTD (PCOM): Free Stock Analysis
WEBMD HEALTH CP (WBMD): Free Stock Analysis
To read this article on Zacks.com click here.
Stocks that are currently better positioned and therefore worth
WebMD Health Corp.
Points International Ltd.
), all carrying a Zacks Rank #2 (Buy).