The University of Idaho was granted consent to extend the Asset Purchase Agreement for the University of Phoenix through June 10. 2025. Following a request from UI, the school’s Board of Regents permitted the request during a meeting last Friday.
The additional time allows legislators and stakeholders to continue conversations and issue feedback regarding the transaction.
The extension will allow other potential buyers to be considered in exchange for $5 million from the owners upon signing. Furthermore, if the deal is not closed by June 30. 2025, UI will receive an additional $5 million.
UI has already spent roughly $11 million on consulting for the purchase, so the presented $10 million will be subtracted from that amount.
Additionally, if the University of Phoenix sells to a different institution, UI will receive $15 million.
Operating as a majority online university, the affiliation presents strong educational merit to Idaho’s adult learners. University of Phoenix’s enrollment growth is at 8%, and its free cash flow for the past year is over $200 million, according to a news release from UI.
Despite its business and educational value, the acquisition remains controversial. Last year, Idaho’s Attorney General Raul Labrador filed a lawsuit against the State Board of Education, claiming the deal violated Idaho’s Open Meetings Law. While the lawsuit was eventually dismissed, Labrador appealed this decision and moved the case to Idaho’s Supreme Court.
Regardless of contentions, President Scott Green affirms the benefits of purchasing UoPx in a recent statement: “The value to Idaho’s educational system, adult learners, and Idaho’s industries is transformational. The affiliation also diversifies revenue streams and strengthens our financial future.”