Perdoceo Education Corporation has entered a definitive agreement to acquire South University Savannah, LLC in a deal that values the institution at roughly $130–$140 million in cash at closing, with further payments that could lift the total to as much as $204 million.
Deal structure and timing
The purchase price includes an initial cash payment in the range reported and an additional $18 million in deferred payments payable over 24 months. Vendors can also receive up to $56 million in earn‑out payments, contingent on South University meeting specified EBITDA targets in fiscal years 2027, 2028 and 2029. Perdoceo said it plans to fund the transaction from cash on hand and that the acquisition is not conditional on external financing.
The transaction remains subject to customary closing conditions, regulatory approvals and sign‑off from the institution's accreditor. Perdoceo indicated the acquisition could complete as early as April 2027, and that the agreement may be terminated if the deal has not closed by 9 July 2027.
Institutional profile and performance
Founded in 1899 in Savannah, Georgia, South University operates 11 campus locations across seven US states and provides online programmes. The institution is accredited by the Southern Association of Colleges and Schools Commission on Colleges through 2034.
For the year ended 31 December 2025, South University reported unaudited revenues of approximately $291 million and an adjusted operating income of about $34 million. The institution served roughly 10,500 students in that period.
Academic offerings include professional and clinical programmes such as a Master of Science in Physician Assistant Studies, Master of Medical Science in Anesthesia Science, Doctor of Pharmacy, and multiple nursing programmes at bachelor’s, master’s and doctoral levels.
Operational and sector implications
Following completion, South University will operate as a for‑profit institution under Perdoceo's ownership. Perdoceo said the transaction is expected to be immediately accretive to its adjusted operating income beginning in 2027, and it reaffirmed its full‑year adjusted operating income outlook for fiscal year 2026 of $258–$263 million.
Perdoceo's chief executive described South University as having a long history of preparing students for careers in in‑demand fields.
"South University has spent more than a century preparing students for in‑demand careers," said Todd Nelson, President and Chief Executive Officer of Perdoceo.
What remains to be decided
The timetable and final outcome depend on regulatory and accreditor approvals. The change to for‑profit ownership will also attract scrutiny from stakeholders interested in educational quality, student outcomes and the future of professional programmes that South University runs.
- Purchase cash at closing: $130–$140 million
- Deferred payments: $18 million over 24 months
- Potential earn‑outs: Up to $56 million tied to EBITDA targets for 2027–2029
- 2025 unaudited revenue: $291 million
- 2025 adjusted operating income: $34 million
- Estimated students served (2025): ~10,500
| Item | Amount |
|---|---|
| Headline cash value at closing | $130–$140m |
| Deferred payments | $18m |
| Maximum earn‑outs | $56m |
| 2025 revenue (unaudited) | $291m |
| 2025 adjusted operating income | $34m |
| Students (2025) | ~10,500 |
For students, staff and regulators, the coming months will be important. Accreditor approval is necessary to ensure continuity of recognised qualifications, and regulatory clearances will consider matters such as institutional governance and protections for students. Perdoceo's assurance that the deal is cash‑funded and not reliant on financing may speed internal approvals, but external sign‑offs are typically slower and require detailed review.
The agreement marks another notable transaction in the US higher education market, where ownership models and the role of for‑profit providers remain subjects of debate among policymakers, educators and student groups. Observers will watch closely how the integration affects programme delivery, student support and outcomes in the professional fields South University serves.
The announcement was made public in Perdoceo’s press release and the buyer has set out its expected timetable and financial assumptions. The purchase agreement allows termination if the deal has not closed by 9 July 2027.
