Apollo Education Group

Apollo Education Group, Inc. was founded in 1973 by John Sperling and John D. Murphy.{{Cite web|url=https://www.deseret.com/2015/4/25/20563390/the-rise-and-fall-of-the-university-of-phoenix/|title = The rise and fall of the University of Phoenix|website = Deseret News|date = 25 April 2015}}

Corporate revenues for the year ending August 31, 2005 were $2.251 billion.{{cite web|url=http://www.apollo.edu/annual-reports/2005.pdf|title=Apollo Group 2005 annual report}}

In 2008, Apollo Group formed a joint venture with Carlyle Group, called Apollo Global, to make international acquisitions. Apollo also purchased schools in Mexico and Chile{{cite news |url=http://chronicle.com/article/Apollo-Group-Buys-University/40503 | date=February 20, 2008 | title=Apollo Group Buys University in Chile | access-date=10 June 2013}}

As of 5 October 2011, Apollo Group had a market capitalization of $5.36 billion and a price-to-earnings ratio of 13.22.{{cite news |title=Apollo Group (APOL) Shares Upgraded to a "Outperform" Rating by Credit Suisse (CS) Analysts |author=Staff |newspaper=American Banking and Market News |date=5 October 2011}}

The Apollo Group announced quarterly results on 30 June 2011. The company reported $1.45 in earnings per share for the previous quarter, exceeding the Thomson Reuters estimate of $1.33 by $0.12. Apollo Group's quarterly revenue was down 7.6% on a year-over-year basis.{{cite news |title=Analysts Weekly Ratings Changes for Apollo Group, Inc. (NASDAQ: APOL) |author= Staff |newspaper=American Banking and Market News |date=8 July 2011}}

In March 2011 the Apollo Group sold its corporate headquarters in Arizona and leased it back in order to raise $170 million in cash. The deal with Cole Real Estate Investments included a 20-year lease requiring Apollo to remain in the complex.{{cite news |title=Apollo threatens to move workers |author=Jahna Berry and Ginger Rough |newspaper=The Arizona Republic (Phoenix) |date=15 April 2011}} "In our view, it does not change the view of the company. Apollo isn't hungry for cash: It carries little debt but generates $4 billion in revenue and has $650 million in net income and $1.5 billion in cash on its balance sheet", commented Peter Wahlstrom of Morningstar, an investment-research company.{{cite news |title=Apollo sells its corporate HQ, signs leaseback deal |url=https://www.azcentral.com/business/abg/articles/20110331abg-biz-apollo0331.html?nclick_check=1 |author=Jahna Berry and J. Craig Anderson |newspaper=Arizona Business Gazette |date=31 March 2011 |access-date=10 June 2013}}

Revenue of the company continued to fall: in the fiscal year ending on August 31, 2011, the net revenue was $4.7 billion; in 2012, $4.2 billion; in 2013, $3.6 billion.{{cite web|url=https://www.sec.gov/Archives/edgar/data/929887/000092988713000150/apol-aug312013x10k.htm|title=APOL – Aug 31 2013 – 10-K|access-date=16 July 2015}} The operating income during this period fell from $956 million in 2011, to $676 million in 2012, to $427 million in 2013. The company attributed this to a decline in enrollment, with degreed enrollment declining from 380,000 in 2011, to 328,000 in 2012, to 269,000 in 2013.Goldie Blumenstyk, "Apollo Group Plans to Lay Off 500, as Does Education Management Corp." Chronicle of Higher Education Oct 23, 2013 [http://chronicle.com/article/Apollo-Group-Plans-to-Lay-Off/142545/?cid=at].

In 2015, co-founder John D. Murphy argued that Apollo Group "lost its direction when it abandoned its roots, which were serving working adults, not recent high school graduates."

On May 6, 2016, the shareholders of the company approved the sale of the firm for $1.14 billion to a group of private investors:Nick DeSantis "Shareholders Approve $1.14-Billion Sale of U. of Phoenix Parent" Chronicle of Higher Education May 6, 2016 [http://chronicle.com/blogs/ticker/shareholders-approve-1-14-billion-sale-of-u-of-phoenix-parent/111188?elqTrackId=feff7316b4074ba9bdadaf57bfb99730&elq=9a4a98b7a48844429ec4152b1424974c&elqaid=8975&elqat=1&elqCampaignId=3076] accessed May 13, 2016 Najafi Companies, a Phoenix firm, the New York-based Apollo Global Management and, the Vistria Group of Chicago.R. J. Hansen "University of Phoenix investors OK sale to private backers" Arizona Republic May 9, 2014 [https://www.azcentral.com/story/money/business/economy/2016/05/06/university-phoenix-investors-ok-sale-private-backers/83997578/] accessed May 13, 2016 The offer amounted to $10 per share, compared to its high of $89/share in 2009. The delisting was completed on February 1, 2017.

The amount of lobbyists for Apollo Education Group was reduced from 27 in 2018 to 10 in 2021.{{cite web |title=Apollo Education Group |url=https://www.opensecrets.org/orgs/apollo-education-group/summary?id=D000021846 |website=www.opensecrets.org |publisher=Open Secrets |access-date=25 October 2021}}

In March 2022, Pearson rejected a £7bn takeover bid from Apollo Global Management.{{Cite news |date=2022-03-30 |title=Apollo drops plans to buy Pearson after £7bn bid rejected |work=Financial Times |url=https://www.ft.com/content/3271a40f-1de9-4c64-a941-aba19e73a157 |archive-url=https://ghostarchive.org/archive/20221224161235/https://www.ft.com/content/3271a40f-1de9-4c64-a941-aba19e73a157 |archive-date=2022-12-24 |url-access=subscription |url-status=live |access-date=2022-08-24 }}

Anthony W. Miller is Apollo Education Group's chairman.{{Cite web|url=http://www.apollo.edu/about/leadership.html|title=Leadership Team | Apollo Education Group|access-date=2019-04-02|archive-date=2020-05-09|archive-url=https://web.archive.org/web/20200509134514/http://www.apollo.edu/about/leadership.html|url-status=dead}}

{{main | University of Phoenix}}

The University of Phoenix is a wholly owned subsidiary of the Apollo Education Group. The University of Phoenix is one of the largest higher education providers in North America.{{cite news|url=https://www.wsj.com/article/BT-CO-20111019-706464.html |work=The Wall Street Journal |title=Apollo Group 4Q Net Soars On Fewer Charges; Enrollment Falls |date=October 19, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20111022004021/http://online.wsj.com/article/BT-CO-20111019-706464.html |archive-date=October 22, 2011 }} The university has approximately 40 campuses and confers degrees in over 100 degree programs at the associate, bachelor's, master's and doctoral levels.[http://www.azbiz.com/articles/2008/08/08/news/doc489c8e8b1ec58870093097.txt University of Phoenix provides growth opportunities for working adults] Lee Allen. Retrieved 18 September 2008. The University of Phoenix has an open enrollment admission policy only requiring a high-school diploma, GED, or an equivalent qualification.{{cite web|url=http://www.eduers.com/University/Arizona/University_of_Phoenix.html |title=University of Phoenix Admissions Profiles |publisher=Eduers.com |access-date=2010-09-11 |url-status=dead |archive-url=https://web.archive.org/web/20100124165630/http://www.eduers.com/University/Arizona/University_of_Phoenix.html |archive-date=2010-01-24 }} The school also provides associate or bachelor's degree applicants opportunity for advanced placement through its prior learning assessment, through which, aside from previous coursework, college credit can come from experiential learning essays, corporate training, and certificates or licenses.{{cite web|url=https://www.phoenix.edu/admissions/prior_learning_assessment.html|title=Recognition of Prior Learning – Assessment – University of Phoenix|website=www.phoenix.edu}}

University of Phoenix students owe more than $35 billion in student loan debt, the most of any US college.{{Cite web|url=https://www.marketwatch.com/story/10-colleges-where-students-owe-the-most-2015-09-11?page=2|title = Student-loan crisis: 10 colleges where students owe the most}} In 2014, University of Phoenix was highlighted in a Time.com article titled "The 5 Colleges That Leave the Most Students Crippled By Debt".{{Cite web|url=http://money.com/money/3426618/student-loan-default-factories/|title = The 5 Colleges That Leave the Most Students Crippled by Debt}}

Apollo Group formed Apollo Global to manage and form subsidiaries, assets, and holdings overseas. As part of their first acquisitions, Apollo Global acquired University for the Arts, Sciences, and Communication (UNIACC) in Chile as well as the now defunct Meritus University in Canada.{{cite web|url=http://phx.corporate-ir.net/phoenix.zhtml?c=79624&p=irol-newsArticle&ID=1145027&highlight=|title=News Release – Apollo Group|access-date=16 July 2015}}{{cite web|url=http://phx.corporate-ir.net/phoenix.zhtml?c=79624&p=irol-newsArticle&ID=1124086&highlight=|title=News Release – Apollo Group|access-date=16 July 2015}}

Apollo Global is a joint venture between the Apollo Group and the Carlyle Group. The two partners invested $1 billion in Apollo Global. The Apollo Group invested roughly $801 million and owns 80.1% of the new company. Carlyle invested $199 million and controls the remaining shares. Apollo Global replaced Apollo International.{{cite web|url=http://phx.corporate-ir.net/phoenix.zhtml?c=79624&p=irol-newsArticle&ID=1065753&highligh|title=News Release – Apollo Group|access-date=16 July 2015}}{{cite web|url=http://www.insidehighered.com/news/2007/10/23/apollo|title=Apollo Goes Global|access-date=16 July 2015}}

Apollo Global changed its name to Vanta Education. Its current holdings are BPP, FAEL, Open Colleges, and ULA.{{Cite web|url=https://www.vantaeducation.com/about-us/our-history/|title = History – Vanta Education}}

{{main|BPP Holdings|BPP University}}

BPP Holdings is a holding company of the United Kingdom-based provider of professional and academic education. The company is divided into BPP Learning Media, BPP Professional Education and BPP University. BPP University is a United Kingdom degree-awarding body with four schools: BPP Business School, BPP Law School, BPP School of Health and BPP School of Foundation and English Language Studies. Apollo Global acquired BPP Holdings (which includes BPP University) in the United Kingdom for $607 million in July 2009.{{cite news|url=http://dealbook.blogs.nytimes.com/2009/07/31/apollo-pays-607-million-for-bpp/|title=Apollo Pays $607 Million for BPP of London|last=Ross Sorkin|first=Andrew|author-link=Andrew Ross Sorkin|date=31 July 2009|work=The New York Times|access-date=2009-08-06}}

{{main | Universidad Latinoamericana }}

The Universidad Latinoamericana in Mexico was acquired by the Apollo Group in 2007, and sold in 2019{{cite web|url=http://phx.corporate-ir.net/phoenix.zhtml?c=79624&p=irol-newsArticle&ID=1184368&highlight=|title=News Release – Apollo Group|access-date=16 July 2015}}

{{main | Open Colleges }}

Open Colleges in Australia was acquired for a 70% share agreement by the Apollo Group in 2013.[https://www.wsj.com/article/BT-CO-20131217-710004.html= Apollo Global Agrees to Acquire Majority Interest in Open Colleges Australia]

{{main | Milpark Education }}

Apollo Group announced in August 2011 a $75 million deal to buy Carnegie Learning along with a separate agreement to acquire related technology from CMU for $21.5 million, to be paid over 10 years.{{cite news |title=CMU software spinout acquired |author=Kim Leonard |newspaper=Pittsburgh Tribune Review |date=3 August 2011}}

In 2007, Apollo Group purchased Aptimus for $48 million.{{Cite magazine|url=https://www.wired.com/2007/08/apollo-group-ac/|title = Apollo Group Acquires Aptimus Ad Firm for $48 Million|magazine = Wired|last1 = Strange|first1 = Adario}}

Aptimus was a full-service, in-house marketing agency for Apollo Group education institutions, including the University of Phoenix, Axia College, the Institute for Professional Development, Olympus High School, and Insight School.{{cite web|url=http://phx.corporate-ir.net/phoenix.zhtml?c=79624&p=irol-newsArticle&ID=1069388&highlight=|title=News Release – Apollo Group|access-date=16 July 2015}}

{{main | Lutheran High School of Orange County}}

Lutheran High School of Orange County (LHSOC) licenses its name to the Apollo Group to offer online courses.{{cite web|last1=Taylor|first1=Dave|title=University of Phoenix expands into religious teaching|url=https://intuitive.com/university_of_phoenix_expands_into_religious_teaching.html|website=intuitive.com/|publisher=Intuitive Systems|access-date=29 December 2014|archive-url=https://web.archive.org/web/20141229024344/https://intuitive.com/university_of_phoenix_expands_into_religious_teaching.html|archive-date=29 December 2014|url-status=dead}}

{{main | Meritus University}}

Apollo Group owned and operated Meritus University in Canada.{{cite web|url=http://topics.nytimes.com/top/news/business/companies/apollo_group/index.html|title=The New York Times – Search|website=topics.nytimes.com}} On January 24, 2011, citing how "enrollment will continue to be insufficient to sustain the required quality academic and student service infrastructure we and our students demand," Meritus University announced its closure, with their last classes taking place on March 14, 2011.

Insight Schools is an online high school offering classes from 9th to 12th grade. Insight both ran high schools for school districts and operated online schools in several U.S. states.{{cite web|url=http://phx.corporate-ir.net/phoenix.zhtml?c=79624&p=irol-newsArticle&ID=948937&highlight=|title=News Release – Apollo Group|access-date=16 July 2015}} Apollo Group acquired Insight Schools in 2007; in 2011 Apollo Group sold Insight Schools to Kaplan, Inc.{{cite news|last1=Blumenstyk|first1=Goldie|title=U. of Phoenix Parent Company Sells Its Online High-School Business to Kaplan|url=http://chronicle.com/article/U-of-Phoenix-Parent-Company/126531/|access-date=29 December 2014|newspaper=The Chronicle of Higher Education|date=February 25, 2011}}

On June 11, 2015, Apollo Education Group acquired a 62% interest in TIY Academy, LLC ("The Iron Yard"), a provider of nondegree information technology bootcamp programs in the United States, for $15.9 million.{{cite web|url=https://www.sec.gov/Archives/edgar/data/929887/000092988716000189/apol-may31201610q.htm|title=07/08/2016 10-Q for APOLLO EDUCATION GROUP INC|website=www.sec.gov|access-date=2016-07-30}} The Iron Yard subsidiary closed all campuses in 2017{{cite news | url = http://www.ajc.com/news/local/coding-school-giant-iron-yard-announces-closure-all-campuses/AjeD1aOnb6KUmetDFH4yaJ/ | title = Coding school giant Iron Yard announces closure of all campuses | work = The Atlanta Journal-Constitution | date = July 20, 2017}} and ceased operations early in 2018.{{Cite news|url=http://ericdodds.com/the-end-of-an-incredible-adventure-with-the-iron-yard/|title=The End of an Incredible Adventure with The Iron Yard|date=2018-02-26|work=Eric Dodds|access-date=2018-03-09|language=en-US}}

The College of Financial Planning was acquired by Apollo in 1997 and sold to Kaplan in December 2017.{{Cite web|url=https://kaplan.com/release/kaplan-professional-education-acquire-college-financial-planning-apollo-education-group/|title = Kaplan Professional Education to Acquire College for Financial Planning from Apollo Education Group}}

{{main | Carnegie Learning}}

File:Carnegie_Learning_logo_2014.png

Carnegie Learning is a publisher of math curricula for middle school, high school, and post-secondary students. The company uses a blended approach, with a textbook and software (called Cognitive Tutor) for each subject. The company also produces products for the homeschool and tutoring markets. Based in Pittsburgh, Pennsylvania, Carnegie Learning was founded by cognitive science researchers from Carnegie Mellon University in conjunction with veteran mathematics teachers.

All of the Cognitive Tutor curricula are based on extensive scientific research from Carnegie Mellon University, along with field tests in schools throughout the United States. The Cognitive Tutors are based on the ACT-R theory of learning, memory and performance. The Tutors themselves were developed using an empirical testing process.{{Cite journal

|last1=Koedinger

|first1=Kenneth R.

|last2=Corbett

|first2=Albert T.

|last3=Ritter

|first3=Steven

|last4=Shapiro

|first4=Lora J.

|quote=In this paper, we describe various evaluations that demonstrate the power of the Cognitive Tutor solution.

|title=Carnegie Learning's Cognitive Tutor: Summary Research Results

|publisher=Carnegie Mellon University

|date=2000-06-22

|url=http://www.carnegielearning.com/web_docs/CMU_research_results.pdf

|url-status=dead

|archive-url=https://web.archive.org/web/20120216085545/http://www.carnegielearning.com/web_docs/CMU_research_results.pdf

|archive-date=2012-02-16

}}

Western International University (West) was a university offering online and in person classroom programs for adult learners. Founded in 1978, West offered associate, bachelor's and master's degree programs to approximately 1,374 students (Fall 2014). West's mission is to provide a broad educational foundation, with a focus on business and technology, designed to prepare students for leadership positions in a dynamic, global marketplace. West was formerly located in Phoenix, Arizona and was more recently located in Tempe, Arizona. West offered in person classroom teachings and online education. The university started shutting down in March 2017 and developed a two year "teaching out" plan to allow students an opportunity to graduate from West or transfer to another institution.{{Cite web |title=New Apollo Education Group owners closing Western International University |url=https://www.azcentral.com/story/money/business/2017/03/10/phoenix-new-apollo-education-group-owners-closing-western-international-university/99009362/ |date= 2017-03-10|archive-url= https://web.archive.org/web/20200918152905/https://www.azcentral.com/story/money/business/2017/03/10/phoenix-new-apollo-education-group-owners-closing-western-international-university/99009362/|archive-date=2020-09-18|access-date= 2023-05-26|website=The Arizona Republic |language=en-US}} The school ceased all operations and officially closed in February 2019.

==Lawsuits and financial reporting{{anchor|Controversy}}==

{{see also|University of Phoenix#Lawsuits and investigations|label 1=University of Phoenix § Lawsuits and investigations}}

After a separate investigation in 2004, the Apollo Group paid about $10 million in fines to the U.S. Department of Education, which had criticised UoP's admissions practices: for example, recruiters were paid bonuses depending on the numbers they signed up.{{cite journal|url=http://www.lrb.co.uk/v35/n20/stefan-collini/sold-out|title=Stefan Collini reviews 'Everything for Sale' by Roger Brown, with Helen Carasso and 'The Great University Gamble' by Andrew McGettigan · LRB 24 October 2013|journal=London Review of Books|date=23 October 2013|volume=35|issue=20|access-date=16 July 2015|last1=Collini|first1=Stefan}} "In 2004, a scathing report issued by the US Department of Education concluded that Phoenix, as The Chronicle of Higher Education put it, had a 'high-pressure sales culture' that intimidated recruiters who failed to meet targets and encouraged the enrollment of unqualified students—in short that it rewarded 'the recruiters who put the most "asses in classes{{"'}}. Apollo illegally withheld the report, but it was leaked and the group's value on the stock market crashed. A suit was brought alleging that its management had 'disseminated materially false and misleading financial statements in an effort to inflate its stock price and attract investors'."

"In 2006, the company's controller and chief accounting officer resigned amid allegations that the books had been cooked; in 2007, the Nasdaq Listing and Hearing Review Council threatened to withdraw Apollo's listing from the stock exchange."{{cite journal|url=http://www.lrb.co.uk/v33/n11/howard-hotson/short-cuts|title=Howard Hotson · For-Profit Universities · LRB 2 June 2011|journal=London Review of Books|date=2 June 2011|volume=33|issue=11|access-date=16 July 2015|last1=Hotson|first1=Howard}}

In January 2008, the above stock-price suit was decided. Apollo was found liable for misleading investors by failing to disclose the Department of Education report that criticized the University of Phoenix's recruiting practices. The jury awarded the shareholders $280 million in damages.[http://chronicle.com/news/article/3765/jury-finds-u-of-phoenix-parent-company-liable-for-280-million Jury Finds U of Phoenix Parent Company Liable for $280 Million] Chronicle of Higher Education January 16, 2008 The trial judge vacated the verdict and found for the defendants,Judge James A. Teilborg, Order, page 10: "The evidence at trial was insufficient to support the jury's finding that the Flynn reports were corrective disclosures. Therefore, PABF failed to prove loss causation, and Apollo is entitled to judgment as a matter of law." http://securities.stanford.edu/filings-documents/1032/APOL04_01/200884_r02o_0402147.pdf but the Ninth Circuit reinstated the verdict.23 June 2010, In re: Apollo Group Inc. Sercurities Litigation, Ninth Circuit, case 08-16971, http://cdn.ca9.uscourts.gov/datastore/memoranda/2010/06/23/08-16971.pdf{{Cite web |title=Apollo Group's $277.5 Million Jury Loss Is Reinstated on Appeal |url=https://www.bloomberg.com/news/articles/2010-06-23/apollo-group-s-277-5-million-jury-loss-reinstated-by-u-s-appeals-court |access-date=2023-05-26 |website=www.bloomberg.com}} The U.S. Supreme Court declined to hear Apollo's appeal of the verdict.10-649, https://www.supremecourt.gov/orders/courtorders/030711zor.pdf{{cite journal |first=Greg |last=Stohr |title=Apollo Group Rejected by High Court on $300 Million Award |journal=Bloomberg |date=7 March 2011 |url=https://www.bloomberg.com/news/articles/2011-03-07/apollo-group-rejected-by-u-s-high-court-on-300-million-award}} The case ultimately resolved with Apollo being liable for $145 million; the reported $280 million figure may have been an error because the jury's award was for $5.55 per share.{{Cite web |last=LaCroix |first=Kevin |date=2011-12-05 |title=After Rare Trial and Lengthy Appeals, Apollo Group Securities Suit Finally Settles for $145 Million |url=https://www.dandodiary.com/2011/12/articles/securities-litigation/after-rare-trial-and-lengthy-appeals-apollo-group-securities-suit-finally-settles-for-145-million/ |access-date=2023-05-26 |website=The D&O Diary |language=en-US}}{{Cite web |title=Securities Class Action Clearinghouse: Case Page |url=https://securities.stanford.edu/filings-case.html?id=103281 |access-date=2023-05-26 |website=securities.stanford.edu}}

In November 2008, Apollo paid $1.89 million to settle a religious discrimination class action without admitting wrongdoing. The Equal Employment Opportunity Commission had brought the claim on behalf of non-Mormon employees of University of Phoenix Online. Under the settlement, University of Phoenix Online agreed to prohibit favoritism toward the Church of Jesus Christ of Latter-day Saints.{{cite news|last=Gilbertson|first=Dawn|title=Religious bias lawsuit settled by Apollo Group|date=November 5, 2008|newspaper=Arizona Republic|url=http://archive.azcentral.com/arizonarepublic/business/articles/2008/11/05/20081105biz-apolloeeoc1105.html|access-date=January 24, 2016}}

In July 2015, Apollo announced the Federal Trade Commission (FTC) was investigating UoP for unfair business practices; "The company must hand over documents regarding matters that include its marketing, tuition, billing, accreditation, and military recruitment practices going back as far as 2011."{{cite journal |first=Katie |last=Lobosco |title=University of Phoenix is the latest college under investigation |date=29 July 2015 |journal=CNN Money |url=https://money.cnn.com/2015/07/29/pf/college/university-of-phoenix-investigation/ |access-date=2016-02-08}} In January 2016, the FTC filed suit against Apollo and University of Phoenix.Federal Trade Commission v. Apollo Education Group Incorporated and University of Phoenix, case number: 2:2016mc00002, filed January 12, 2016, Arizona District Court The court ordered Apollo and UoP to comply with the FTC's civil investigative demands.{{Cite web |url=https://consumermediallc.files.wordpress.com/2016/01/ftc-v-apollo-order.pdf |title=Archived copy |access-date=2016-02-04 |archive-url=https://web.archive.org/web/20160311105532/https://consumermediallc.files.wordpress.com/2016/01/ftc-v-apollo-order.pdf |archive-date=2016-03-11 |url-status=dead }}

{{Reflist}}

{{Portal|Arizona|Companies}}

• [http://www.apollo.edu Official website]

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{{Apollo Group}}

{{Apollo Global Management}}

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Category:Companies formerly listed on the Nasdaq

Category:Education companies established in 1973

Category:Companies based in Phoenix, Arizona

Category:Educational organizations established in 1973

Category:Education companies of the United States

Category:1973 establishments in Arizona

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Category:2017 mergers and acquisitions

Category:Private equity portfolio companies