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American Public Education, Inc. (Nasdaq: APEI), the parent company of American Public University System (“APUS”) and Hondros College of Nursing (“HCN”), today announced that it has completed its acquisition of Rasmussen University (“Rasmussen”).

With the closing of the Rasmussen acquisition, APEI is nearly doubling in revenue to approximately $600 million and significantly diversifying its revenue streams to approximately one-third military and veteran students, one-third nursing students, and one-third online adult learners. The combined entity will serve over 110,000 students and is expected to generate approximately $90 million in adjusted EBITDA before synergies.1

Rasmussen is a nursing- and healthcare-focused institution, and collectively with Hondros, APEI is now the largest educator of pre-licensure nursing students in the country with enrollment of nearly 11,000. On a trailing 12-month basis as of June 30, 2021, nursing represented $200 million of revenue and almost a third of APEI’s total revenue. Rasmussen adds approximately 8,500 nursing students to the 2,300 nursing students already served by Hondros.

“With our current nursing footprint of 30 campuses across eight states and a full complement of nursing programs, we are well-positioned to help address the significant, long-term nursing shortage across the country, both now and over the next several years,” said APEI President and CEO Angela Selden. “This acquisition is a very meaningful step forward in APEI’s ongoing transformation. We are focused on delivering high-quality education that leads to strong employment and career opportunities for our students at some of the most affordable tuition rates, helping to maximize students’ return on their higher education investment.”

Rasmussen is expected to generate approximately $275 million of revenue for the full year 2021. The transaction is expected to generate cost savings in excess of $5 million in the first 12 months post-close and at least $10 million in the second and third years after closing. Pursuant to the purchase agreement for the Rasmussen acquisition, APEI elected to pay $29 million in cash at closing in lieu of issuing Preferred Stock to the seller.

Angela Selden added, “We are so pleased to welcome Rasmussen’s talented base of employees and management who have built an institution that not only delivers a great student experience and strong outcomes and has a student-centric culture that aligns very well with APEI.”

Rasmussen will continue to be led by Tom Slagle, who has been CEO since 2010 and has driven Rasmussen’s focus on nursing and its growth during the past 11 years.

Rasmussen will continue to operate as a separately accredited institution. It is regionally accredited by the Higher Learning Commission (HLC) and offers a full complement of degree programs in Nursing, Health Sciences, Business, Technology, Design, Education and Justice Studies.