Zovio Announces Agreement to Divest OPM Business to University of Arizona Global Campus
Zovio, an education technology services company that partners with higher education institutions and employers, announced that it has closed on an agreement to transition its online program management (OPM) business to the University of Arizona Global Campus (UAGC).
Over the past six months, Zovio has taken steps to implement a process designed to unlock shareholder value by rightsizing the company, accelerating growth of subsidiaries and exploring strategic alternatives, which included the potential divestiture of all three of its businesses.
In May 2022, Zovio completed the sale of TutorMe, for $55 million and used a portion of the proceeds to repay bridge financing. This left the company debt free and allowed Zovio to satisfy obligations stemming from a decision of the Superior Court of California while the company appeals the decision.
Continuing to execute on its strategic alternatives process, Zovio and UAGC negotiated, signed and closed on an asset purchase agreement with an effective date of July 31, 2022, after receiving approval from their respective Boards of Directors. Under the asset purchase agreement, UAGC is acquiring Zovio’s operations and assets that previously provided services to UAGC through a long-term Strategic Services Agreement.
“Zovio has been at the forefront of providing innovative online learning products and services for almost two decades,” Zovio Chief Executive Officer, Randy Hendricks said. “We are pleased to have reached this agreement with UAGC and are excited about their future,” Hendricks concluded.
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