Perdoceo

Perdoceo Education Corporation is a publicly traded American education services company focused on postsecondary education. The business was established in 1994 as Career Education Corporation, founded by John M. Larson, and initially expanded through a network of career-oriented colleges and specialized schools. During its earlier period, the company operated a much larger campus footprint than it does today, including institutions associated with design, culinary arts, healthcare, technology, business, and vocational education. A major expansion occurred in 2003, when Career Education merged with Whitman Education Group. The transaction brought Colorado Technical University and several Sanford-Brown and related schools into the company. Career Education also obtained rights to operate Le Cordon Bleu schools in the United States and Canada in 2009. Over time, however, regulatory scrutiny, declining enrollment at many campus-based schools, litigation, student-debt concerns, and changes in the U.S. for-profit education market led the company to close, sell, or wind down most of its physical-school portfolio. The company increasingly concentrated on online education. Its principal continuing institutions became American InterContinental University and Colorado Technical University, both of which offer career-oriented programs delivered largely online, with additional campus or instructional facilities associated with some programs. Career Education acquired Trident University International in 2019 and California Southern University in 2022, broadening its online and adult-learning portfolio. It also acquired DigitalCrafts and Hippo Education in 2021, although the status and strategic role of individual assets can change over time. On January 1, 2020, Career Education Corporation formally adopted the name Perdoceo Education Corporation. The rebranding followed a period in which the company had settled substantial regulatory and consumer-protection matters involving its former operations. Perdoceo has denied wrongdoing in connection with major settlements while presenting itself as an education platform focused on access, flexible delivery, and workforce-relevant credentials. In 2024, Perdoceo announced an agreement to acquire University of St. Augustine for Health Sciences, a provider specializing in graduate health-sciences education. The announced transaction was intended to expand the company beyond its established business and technology offerings into health-professions education. Perdoceo remains listed on Nasdaq under the ticker PRDO and operates primarily in the United States through its education subsidiaries and institutions.

Career Education Corporation was founded in 1994 by John M. Larson and expanded rapidly during the late 1990s and early 2000s through acquisitions and the development of career-focused institutions. Under Larson, the company grew to more than two dozen U.S. campuses. Its 2003 merger with Whitman Education Group was a formative transaction, adding Colorado Technical University, Sanford-Brown schools and other educational assets. The company’s expansion was accompanied by regulatory and legal challenges. In 2003, it faced securities litigation allegations concerning inflated financial results and misleading statements. The Securities and Exchange Commission investigated accounting and disclosure issues during the 2000s; Career Education later reported that the investigation had closed without enforcement action. A separate Department of Justice investigation ended in 2007 without prosecution. The U.S. Department of Education temporarily restricted expansion in 2005 over financial-statement and program-review issues involving certain schools. American InterContinental University was placed on accreditation probation in 2005, and the probation was removed after subsequent review in 2007. Career Education also attracted criticism over recruiting practices, employment-placement claims, student outcomes and the burden of federally supported student loans. Media reports examined alleged misrepresentations at schools including Brooks College and the California Culinary Academy. The company settled a California Culinary Academy-related matter for $10 million and later paid $10.25 million to resolve New York allegations concerning job-placement advertising. In 2014, more than a dozen state attorneys general sought information about the company, while federal policy proposals concerning gainful employment placed pressure on the for-profit education sector. From 2007 onward, the company began reducing its physical-school footprint. It closed or phased out Brooks College, Gibbs College locations, Lehigh Valley College, McIntosh College, parts of American InterContinental University’s campus network and other institutions. It later closed the remaining Sanford-Brown Colleges and the U.S. Le Cordon Bleu campuses. Harrington College of Design and other formerly owned schools also eventually closed or left the portfolio. The strategy shifted toward a smaller group of primarily online institutions, especially American InterContinental University and Colorado Technical University. Career Education changed leadership several times during this restructuring. Gary McCullough served as chief executive from 2007 until 2011, followed by Steven H. Lesnik as interim chief executive and then Scott Steffey. Todd S. Nelson became chief executive in 2015 and oversaw further consolidation. The company had approximately 43,000 students in 2016, although a significant portion were associated with schools being closed or taught out. In 2019, Career Education acquired Trident University International and agreed to a major multistate student-debt settlement. It also reached a $30 million settlement with the Federal Trade Commission concerning the alleged use of deceptive lead-generation websites to attract prospective students. On January 1, 2020, the company formally became Perdoceo Education Corporation. The renamed company continued its online-focused strategy while managing scrutiny over federal funding, compliance and student outcomes. Perdoceo acquired DigitalCrafts and Hippo Education in 2021 and California Southern University in 2022. Andrew Hurst replaced Todd Nelson as chief executive in 2022. In July 2024, Perdoceo announced a planned cash acquisition of University of St. Augustine for Health Sciences, extending its portfolio into graduate health-sciences education. The company remains an active, Nasdaq-listed U.S. education operator, with its business centered on institutions serving adult, online and career-oriented learners.

• 2024

  University of St. Augustine acquisition announced

  [1]Perdoceoen.wikipedia.org

  Perdoceo announced an agreement to acquire University of St. Augustine for Health Sciences.

• 2022

  California Southern University acquired

  [1]Perdoceoen.wikipedia.org

  Perdoceo acquired California Southern University and Andrew Hurst became chief executive.

• 2021

  DigitalCrafts and Hippo Education acquired

  [1]Perdoceoen.wikipedia.org

  Perdoceo expanded through acquisitions in technology training and medical education.

• 2020

  Corporate name changes to Perdoceo

  [1]Perdoceoen.wikipedia.org

  Career Education Corporation officially adopted the Perdoceo Education Corporation name.

• 2019

  Trident University acquired

  [1]Perdoceoen.wikipedia.org

  Career Education entered an agreement to acquire Trident University International and subsequently incorporated it into its higher-education portfolio.

• 2015

  Todd Nelson becomes chief executive

  [1]Perdoceoen.wikipedia.org

  Nelson took over as chief executive as the company accelerated its transition away from many campus-based schools.

• 2009

  Le Cordon Bleu operating rights acquired

  [1]Perdoceoen.wikipedia.org

  Career Education obtained the right to operate Le Cordon Bleu schools in the United States and Canada.

• 2003

  Merger with Whitman Education Group

  [1]Perdoceoen.wikipedia.org

  The merger added Colorado Technical University, Sanford-Brown schools and other education assets.

• 1994

  Career Education Corporation is founded

  [1]Perdoceoen.wikipedia.org

  John M. Larson founded Career Education Corporation, the company that later became Perdoceo Education Corporation.

A publicly traded provider of flexible, career-oriented and primarily online postsecondary education.

• Online and campus-based higher education

  American InterContinental University

  American InterContinental University is a Perdoceo-owned institution offering career-oriented undergraduate and graduate programs. Its delivery model is primarily online, serving students seeking flexible study in fields such as business, information technology, criminal justice, healthcare administration and related professional areas.

• Online higher education

  Colorado Technical University

  Colorado Technical University provides primarily online degree programs with a career and workforce orientation. Its academic portfolio includes business, technology, engineering, cybersecurity, healthcare and other professional disciplines.

• Online higher education

  Trident University International

  Trident University International is an online university acquired by Career Education Corporation in 2019. It serves adult and nontraditional learners through flexible degree programs and became part of Perdoceo’s continuing higher-education portfolio.

• Online higher education

  California Southern University

  California Southern University is an online institution acquired by Perdoceo in 2022. It contributes programs aimed at working adults and professional learners, including business, psychology, nursing and related fields.

• Graduate health-sciences education

  University of St. Augustine for Health Sciences

  University of St. Augustine for Health Sciences specializes in graduate and professional education for health-sciences careers. Perdoceo announced an agreement in 2024 to acquire full ownership, subject to completion of the transaction.

• Culinary education · 2009

  Le Cordon Bleu schools

  Career Education operated Le Cordon Bleu schools in the United States under acquired operating rights beginning in 2009. The company later closed all of its U.S. Le Cordon Bleu campuses, with the shutdown process announced in 2015 and completed thereafter.

• 2020

  Federal funding and regulatory scrutiny

  Reports described scrutiny involving Title IV funding, the 90/10 rule and proposed or threatened funding restrictions affecting Colorado Technical University and American InterContinental University.

  Source

• 2019

  Multistate student-debt settlement

  The company agreed to forgive approximately $493 million in student debt in a settlement with attorneys general from 48 states and the District of Columbia. The company denied wrongdoing.

  Source

• 2019

  Federal Trade Commission lead-generation settlement

  Perdoceo agreed to pay $30 million to settle Federal Trade Commission allegations concerning deceptive lead-generation websites used to attract prospective students.

  Source

• 2013

  New York job-placement advertising settlement

  Career Education paid $10.25 million to settle New York allegations that it systematically misrepresented employment-placement rates to students.

  Source

• 2003

  Securities litigation over financial reporting

  Career Education was sued over allegations that it inflated financial results and issued misleading statements in violation of securities law.

  Source

Read more

• 2024

  Agreement to acquire University of St. AugustineM&A

  Background

  Perdoceo sought to expand into graduate health-sciences education.

  Action taken

  The company announced an agreement to acquire 100% ownership of University of St. Augustine for Health Sciences for an expected cash consideration of approximately $142 million to $144 million at closing.

  Aftermath

  The planned transaction would add a specialized health-professions education platform to Perdoceo’s portfolio.

  Expected cash consideration at closing. Approximately $142 million–$144 million (Announced July 16, 2024)

  Source

• 2022

  Acquisition of California Southern UniversityM&A

  Background

  Perdoceo continued adding online higher-education institutions serving adult and professional learners.

  Action taken

  The company acquired California Southern University for approximately $40 million.

  Aftermath

  California Southern University joined Perdoceo’s online education portfolio.

  Reported acquisition consideration. $40 million (2022)

  Source

• 2021

  Acquisitions in technology and medical educationM&A

  Background

  Perdoceo pursued adjacent education categories beyond its core online universities.

  Action taken

  The company acquired DigitalCrafts for approximately $18.4 million and Hippo Education for approximately $43.3 million.

  Aftermath

  The acquisitions broadened the group’s exposure to technology training and medical education.

  Reported acquisition consideration. $61.7 million combined (2021)

  Source

• 2020

  Corporate rebranding as PerdoceoStrategy

  Background

  The former Career Education identity was associated with a large legacy campus portfolio and extensive regulatory controversy.

  Action taken

  The corporation changed its legal and public name to Perdoceo Education Corporation.

  Aftermath

  The company continued operating its education institutions under a new corporate identity.

  Source

• 2019

  Acquisition of Trident University InternationalM&A

  Background

  Perdoceo sought to expand its online higher-education platform and adult-learner reach.

  Action taken

  Career Education agreed to acquire Trident University International in a transaction reported at approximately $35 million to $44 million.

  Aftermath

  Trident became part of the company’s online university portfolio.

  Reported transaction value. $35 million–$44 million (2019)

  Source

• 2015

  Consolidation around online institutionsStrategy

  Background

  Declining enrollment, regulatory pressure and weakening economics affected the company’s broad campus-based portfolio.

  Action taken

  The company closed or sold many campuses and concentrated operations around American InterContinental University and Colorado Technical University.

  Aftermath

  Perdoceo evolved into a substantially smaller, primarily online education group.

  Source

1. 1Perdoceoen.wikipedia.org
2. 2Perdoceo Education Corporationperdoceoed.com