Strategic Education, Inc.

Last updated
Strategic Education, Inc.
Type Public
IndustryEducation
Headquarters Herndon, Virginia, U.S.
Key people
  • Robert S. Silberman
    (Executive Chairman)
  • Karl McDonnell (CEO)
  • Daniel W. Jackson (CFO)
ServicesOnline education
RevenueIncrease2.svg US$ 1,027,700,000 (2020)
Decrease2.svg US$ 94,400,000 (2020)
Decrease2.svg US$ 39,300,000 (2020)
Number of employees
3,076 (2019)
Website strategiceducation.com
Footnotes /references
[1]
Entrance to Capella Education Corporation headquarters at 225 South Sixth in Minneapolis 051207-MPLS-004CapellaHQ.jpg
Entrance to Capella Education Corporation headquarters at 225 South Sixth in Minneapolis

Strategic Education, Inc. (SEI), is an education services holding company and is formerly known as Strayer Education, Inc. The company owns for-profit, online Capella University and Strayer University, as well as non-degree programs schools such as DevMountain, Hackbright Academy, and Sophia Learning. [2]

Contents

History

In August 2018, Capella Education Company merged with Strayer Education, Inc., in a $1.9 billion deal. [3] The two publicly traded parent companies combined corporate functions; however, the universities remain operating as separate institutions. [4] Strayer shareholders control 52% of Strategic Education, while Capella shareholders control the other 48%. [5]

In July 2020, Strategic Education announced a series of acquisitions: Laureate Education, Inc.'s Australia and New Zealand operations for a reported $642 million; Torrens University in Australia and Think Education and Media Design School in New Zealand for a combined $900 million. [6] [7]

Strayer University and Capella University collectively serve about 80,000 students. [8]

Capella Education Company

Capella Education Company was founded in 1991 by Stephen Shank, former CEO of Tonka Corporation. In 1993, it opened The Graduate School of America (TGSA). In 1999, the company and university were renamed to Capella Education Company and University. In 2003, the company was named to Inc. magazine's Inc. 500 Hall of Fame after being named one of America's 500 Fastest-Growing Private Companies for the fifth year in a row. Prior to going public the company raised more than $67 million from private investors, including Maveron.

On January 8, 2005, Capella Education Co. said it had two new investors following deals totaling more than $60 million. [9] The company announced its intentions to go public with an initial public offering in April 2005. It reported 2005 earnings of $10.2 million on sales of nearly $150 million. On November 9, 2006, it completed a public offering that raised $80 million.

In March 2008, Capella Education Co., longtime occupant the 225 South Sixth skyscraper in downtown Minneapolis, signed a new lease that changed the name of the building to Capella Tower. The expanded facility housed all of the company's 1,150 downtown Minneapolis employees, since Capella, as the online school does not have classrooms, the space houses administrative staff and faculty. The name change took place in March 2009. [10]

In July 2011, Capella Education Company acquired the UK based Resource Development International Ltd to gain access to the fast-growing international higher education market. [11] [12] In August 2015, RDI received approval in the UK to become the newly formed Arden University in 2015. [13] [14] The following year Capella sold Arden University and its subsidiaries to Global University Systems. [15]

In April 2016, Capella Education Company acquired the software engineering school for women, Hackbright Academy and coding bootcamp, DevMountain. [16]

Strategic Education, Inc.

Strayer Education Inc. was a publicly traded corporation, established as a holding company for the college and other assets in 1996. The company was created to take what was then Strayer College public and raise capital for expansion. Its corporate headquarters are in Herndon, Virginia. [17] [18] Karl McDonnell has been CEO since May 2013. [19] [20] McDonnell joined Strayer in July 2006, and was previously president and COO. Previous CEO Robert S. Silberman, who took the position in March 2001, was named executive chairman of the board. [21]

Between 2001 and 2005, the company's main owners were New Mountain Capital and a private equity unit of Deutsche Bank, DB Capital. [22] In 2021, Strategic Education's top shareholders are BlackRock, T. Rowe Price, and Vanguard Group. [23]

In 2009, Robert S. Silberman had a total compensation of $41.5 million, a large portion of which was restricted stock that does not vest until 2019. [22] This was the highest compensation in the for-profit education industry and led in 2010 to the Washington Post naming him the most highly compensated CEO in the Washington, D.C., area. [22] [24] His annual compensation in 2010 was $1.5 million. [22]

In 2010, Strayer (STRA) shares peaked at $253. but the stock dropped to $34 in 2013. By June 2020, however, STRA shares had rebounded to $170 a share. In November 2021, shares are $61, dropping 35 percent for the year. [25]

Related Research Articles

<span class="mw-page-title-main">Berkshire Hathaway</span> American multinational conglomerate holding company

Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. Its main business and source of capital is insurance, from which it invests the float in a broad portfolio of subsidiaries, equity positions and other securities. The company has been overseen since 1965 by its chairman and CEO Warren Buffett and vice chairman Charlie Munger, who are known for their advocacy of value investing principles. Under their direction, the company's book value has grown at an average rate of 20%, compared to about 10% from the S&P 500 index with dividends included over the same period, while employing large amounts of capital and minimal debt.

Strayer University is a private for-profit university headquartered in Washington, D.C. It was founded in 1892 as Strayer's Business College and later became Strayer College, before being granted university status in 1998.

<span class="mw-page-title-main">Singapore Exchange</span> Investment holding company in Singapore

Singapore Exchange Limited is a Singapore-based exchange conglomerate, operating equity, fixed income, currency and commodity markets. It provides a range of listing, trading, clearing, settlement, depository and data services. SGX Group is also a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges Federation. it is ASEAN's second largest market capitalization after Indonesia Stock Exchange at US$585.97 billion as of September 2023.

<span class="mw-page-title-main">Capella University</span> American online university

Capella University is a private for-profit, online university headquartered in Minneapolis, Minnesota. The school is owned by the publicly traded Strategic Education, Inc. and delivers most of its education online.

<span class="mw-page-title-main">Soros Fund Management</span> Private investment firm

Soros Fund Management, LLC is a private American investment management firm. It is currently structured as a family office, but formerly as a hedge fund. The firm was founded in 1970 by George Soros and, in 2010, was reported to be one of the most profitable firms in the hedge fund industry, averaging a 20% annual rate of return over four decades. It is headquartered at 250 West 55th Street in New York. As of 2023, Soros Fund Management, LLC had $25 billion in AUM.

A reverse takeover (RTO), reverse merger, or reverse IPO is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. Sometimes, conversely, the public company is bought by the private company through an asset swap and share issue. The transaction typically requires reorganization of capitalization of the acquiring company.

<span class="mw-page-title-main">BlackRock</span> American multinational investment management corporation

BlackRock, Inc. is an American multinational investment company based in New York City. Founded in 1988, initially as an enterprise risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager, with US$9.42 trillion in assets under management as of June 30, 2023. BlackRock operates globally with 70 offices in 30 countries, and clients in 100 countries. BlackRock is the manager of the iShares group of exchange-traded funds, and along with The Vanguard Group and State Street, it is considered to be one of the Big Three index fund managers. Its Aladdin software keeps track of investment portfolios for many major financial institutions and its BlackRock Solutions division provides financial risk management services. BlackRock is ranked 184th on the Fortune 500 list of the largest United States corporations by revenue.

<span class="mw-page-title-main">N. Murray Edwards</span> Canadian businessman

Norman Murray Edwards is a Canadian oil sands financier and a co-owner of the Calgary Flames hockey team. With an estimated net worth of US$2.7 billion, Edwards was ranked by Forbes as the 32nd wealthiest Canadian and 1511th in the world. Edwards has launched several major Canadian companies, including Canadian Natural Resources Ltd, Magellan Aerospace Corporation and Ensign Energy Services Inc.

<span class="mw-page-title-main">The Children's Investment Fund Management</span> London‐based hedge fund management firm

The Children's Investment Fund Management (UK) LLP (TCI) is a London‐based hedge fund management firm founded by Chris Hohn in 2003 which manages the Children's Investment Master Fund. TCI makes long‐term investments in companies globally. The management company is authorized and regulated in the United Kingdom by the Financial Conduct Authority. Its holding company is TCI Fund Management Limited, based in the Cayman Islands. TCI derives its name from a charitable foundation called the Children's Investment Fund Foundation (CIFF), set up by Chris Hohn and his ex-wife, Jamie Cooper-Hohn, and initially contributed a proportion of profits to the foundation. In January 2022, TCI was named by the Guardian as the world's top-performing hedge fund. It is known as one of the most aggressive activist investors.

Executive compensation is composed of both the financial compensation and other non-financial benefits received by an executive from their employing firm in return for their service. It is typically a mixture of fixed salary, variable performance-based bonuses and benefits and other perquisites all ideally configured to take into account government regulations, tax law, the desires of the organization and the executive.

Adtalem Global Education Inc. is an American corporation based in Chicago, Illinois, that operates several for-profit higher education institutions, including American University of the Caribbean School of Medicine, Chamberlain University, EduPristine, Ross University School of Medicine, Ross University School of Veterinary Medicine, and Walden University.

Broadridge Financial Solutions, Inc. is a public corporate services and financial technology company founded in 2007 as a spin-off from management software company Automatic Data Processing. Broadridge supplies public companies with proxy statements, annual reports and other financial documents, and shareholder communications solutions, such as virtual annual meetings.

<span class="mw-page-title-main">Robert S. Silberman</span>

Robert Stephen Silberman is an American businessman and former United States Assistant Secretary of the Army from 1992 to 1993. He was previously assistant to the chief executive officer of International Paper from 1993 to 1995 and CEO of Strayer Education, Inc. from 2001 to 2013. Silberman was named executive chairman of the board of Strayer Education Inc. in 2013. He is the son of judge Laurence Silberman.

<span class="mw-page-title-main">Executive compensation in the United States</span> Pay and benefits for upper management

In the United States, the compensation of company executives is distinguished by the forms it takes and its dramatic rise over the past three decades. Within the last 30 years, executive compensation or pay has risen dramatically beyond what can be explained by changes in firm size, performance, and industry classification. This has received a wide range of criticism leveled against it.

<span class="mw-page-title-main">Jack Welch Management Institute</span>

The Jack Welch Management Institute (JWMI) at Strayer University is a for-profit online educational institution based in the United States, owned by Strategic Education, Inc. It was founded in 2009 by Jack Welch, former CEO of General Electric and his wife, Suzy Welch, author and public speaker. JWMI offers an online executive Master of Business Administration degree, graduate certificates, and executive certificates for working adults. The company is headquartered outside of Washington D.C. at Strayer University's corporate office - 2303 Dulles Station Blvd, Herndon, VA 20171.

<span class="mw-page-title-main">2U (company)</span> Education technology company

2U, Inc. is an American educational technology company that contracts with non-profit colleges and universities to build, deliver and support online degree and non-degree programs. It is also the parent company of edX.

For-profit higher education in the United States refers to the commercialization and privatization of American higher education institutions. For-profit colleges have been the most recognizable for-profit institutions, and more recently with online program managers, but commercialization has been a part of US higher education for centuries. Privatization of public institutions has been increasing since at least the 1980s.

Terren Scott Peizer is an American businessperson. He was the CEO and chairman of Ontrak Inc., a publicly traded healthcare company, but resigned in March 2023 after US authorities charged him with insider trading and securities fraud. He formerly worked as a junk bond salesman at Drexel Burnham Lambert, and ultimately testified against his former boss Mike Milken in Milken's securities fraud prosecution, in exchange for immunity from both criminal prosecution and SEC sanctions. He also held executive positions in small-cap technology, debt collection, bicycle tire, shoe importing, and biotech companies.

<span class="mw-page-title-main">Arden University</span> British private for-profit university

Arden University is a private, for-profit teaching university in the United Kingdom. It offers a variety of undergraduate and post-graduate programmes with both blended and online distance learning delivery options. Its head office is in Coventry with study centres in Birmingham, Manchester, London and Berlin. Originally established as Resource Development International (RDI) in 1990, it was later bought by Capella Education and awarded university status by the British government in 2015. Since August 2016, it has been owned by Global University Systems.

<span class="mw-page-title-main">Ryan Cohen</span> Canadian entrepreneur and investor

Ryan Cohen is a Canadian entrepreneur and activist investor. He founded e-commerce company Chewy in 2011, and was the company's chief executive office (CEO) until 2018. Cohen currently serves as the chairman and CEO of GameStop.

References

  1. ↑ "US SEC: Form 10-K Strategic Education, Inc". U.S. Securities and Exchange Commission . Retrieved August 10, 2020.
  2. ↑ "Strategic Education, Inc 10-K filed in 2020"". www.sec.gov. March 2, 2020. Retrieved August 10, 2020.
  3. ↑ Ashley Smith. "Strayer and Capella Merger Finalized".
  4. ↑ Andy Medici. "Pencils down: Strayer completes 'merger of equals' with Minneapolis education firm".
  5. ↑ Gemma Cottrell. "Strayer Education (NASDAQ:STRA) Downgraded by Zacks Investment Research".
  6. ↑ "Amid the gloom in higher education, Torrens University's sale shines a light on things to come". Crikey. 7 August 2020. Retrieved 30 November 2020.
  7. ↑ Sydney Lake (6 August 2020). "Strategic Education Inc. to raise $191.5M through public stock offering". Virginia Business. Retrieved 30 November 2020.
  8. ↑ Emma Whitford. "Strayer and Capella Merger Approved".
  9. ↑ "CAPELLA INVESTORS BUY $60M WORTH OF SHARES".[ permanent dead link ]
  10. ↑ Sam Black, Capella lease to rename 225 South Sixth, Minneapolis / St. Paul Business Journal, March 20, 2008.
  11. ↑ Wall Street Journal Online Edition http://online.wsj.com/article/BT-CO-20110715-705702.html
  12. ↑ Capella Education Company News Release "Capella University News Releases - Capella Education Company Press Releases - Capella News Releases". Archived from the original on 2011-07-21. Retrieved 2011-07-19.
  13. ↑ MarketWatch.com RDI, Subsidiary of Capella Education Company, Approved to Operate as Arden University in the United Kingdom
  14. ↑ Times Higher News, For-profit RDI granted university status
  15. ↑ Peters, Kai; Smith, Richard R.; Thomas, Howard (eds.) (2018). Rethinking the Business Models of Business Schools, p. 161. Emerald Group Publishing. ISBN   1787548740
  16. ↑ "Hackbright Academy Joins Capella Education Company to Further Goal of Closing the Gender Gap in Software Engineering".
  17. ↑ "History". Strayer Education. Strayer Education, Inc. Retrieved 30 December 2011.
  18. ↑ "Strayer Education Inc". Bloomberg Businessweek. 21 February 2012. Archived from the original on 30 July 2012. Retrieved 26 March 2012.
  19. ↑ Strayer Education Inc. Bloomberg, May 10, 2016.
  20. ↑ Robert S. Silberman Bloomberg, May 10, 2016.
  21. ↑ Strayer Education Inc. Wall Street Journal, May 10, 2016.
  22. 1 2 3 4 "For Profit Higher Education: The Failure to Safeguard the Federal Investment and Ensure Student Success". U.S. Senate Committee on Health, Education, Labor, and Pensions. pp. 713–727. Archived from the original (PDF) on 29 July 2012. Retrieved 9 August 2012.
  23. ↑ "STRA Institutional Ownership and Shareholders - Strayer Education, Inc. (NASDAQ) Stock". fintel.io. FINTEL. Retrieved 14 November 2021.
  24. ↑ Beyers, Dan (2010). "Executive Compensation". The Washington Post. Retrieved 30 December 2011.
  25. ↑ "Strategic Education". seekingalpha.com. Seeking Alpha. Retrieved 14 November 2021.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.