Laureate Education’s stock jumps after $1.5 billion deal to sell Walden University

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Shares of Laureate Education Inc. jumped 13% toward a 6-month high in morning trading Friday, after the for-profit education company agreed to sell its online Walden University to Adtalem Global Education Inc. for $1.48 billion in cash. Adtalem’s stock rose 0.8%. The deal is expected to close toward the end of 2021. Adtalem said it expects the deal to add $60 million to free cash flow and 75 cents to earnings per share in year two after the closing of the deal, and to generate $60 million in annual cost savings. Year to date, Laureate’s stock has dropped 22.2% and Adtalem shares have shed 9.6%, while the S&P 500 has gained 3.7%.
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