Laureate Education

Laureate Education is a higher-education company headquartered in Miami, Florida, that owns and operates universities and colleges through the Laureate International Universities network. Its activities have historically covered campus-based and online higher education across the Americas, Europe, Asia, Australia and New Zealand. By 2021, following a multiyear program of asset sales and market withdrawals, its continuing operations were concentrated primarily in Mexico and Peru. The business began in 1998 when Douglas Becker created Sylvan International Universities as a post-secondary division of Sylvan Learning Systems. Its first major acquisition was Universidad Europea de Madrid in Spain in 1999. The company subsequently expanded through acquisitions and investments in institutions including Universidad del Valle de México, Universidad de las Américas in Chile, Les Roches International School of Hotel Management in Switzerland and Walden University in the United States. In 2003, Sylvan decided to focus exclusively on post-secondary education, selling its primary- and secondary-school operations and the Sylvan name. The company adopted the Laureate Education name in 2004 and acquired full control of Walden later that year. Laureate was taken private in 2007 by an investor group led by Becker. During the following decade it pursued an aggressive international expansion strategy, building a network that the company said exceeded 50 institutions in 21 countries by 2010. It also developed relationships with public figures, international organizations and education-technology companies. Bill Clinton served as honorary chancellor from 2010 until 2015, while the International Finance Corporation invested $150 million in 2013 to support expansion in emerging higher-education markets. Laureate also invested in Coursera and formed a proposed partnership with Thunderbird School of Global Management. The company returned to public markets in February 2017 after an initial public offering on Nasdaq. At the time of the offering, Laureate reported more than one million students, over 200 campuses and operations in 28 countries. The IPO was intended partly to reduce the company's substantial debt. Laureate also became a certified benefit corporation in 2015, presenting itself as a business that combined commercial activity with a social mission related to access to higher education. From 2017 onward, Laureate began reducing the breadth of its portfolio. It sold or exited institutions in Morocco, China, Malaysia, Italy, Cyprus, Turkey, Australia, New Zealand, Chile, Brazil, the United Kingdom and other markets. The company also closed or transferred several schools and stopped enrolling new students in selected programs. These moves reflected pressure from leverage, changing market conditions and a strategy centered on fewer core markets. In 2020, Laureate announced sales of its Australian and New Zealand operations, Walden University and its Brazilian institutions. The Brazilian business was ultimately sold to Anima Holding for $765 million, while Walden was sold to Adtalem for $1.48 billion. By 2021, Laureate's continuing network consisted principally of institutions in Mexico and Peru, including Universidad del Valle de México, Universidad Tecnológica de México, CIBERTEC, Universidad Peruana de Ciencias Aplicadas and Universidad Privada del Norte. The company reported approximately 349,000 students in those continuing operations as of June 2021. Its strategic emphasis was on maintaining those markets, resuming in-person instruction after the COVID-19 disruption and operating as a public company after the major divestitures.

Laureate Education originated in 1998 as Sylvan International Universities, a post-secondary division established by Douglas Becker within Sylvan Learning Systems. The division was created to own and operate higher-education institutions while Sylvan itself continued to serve primary- and secondary-school students. Its first significant acquisition was Universidad Europea de Madrid in 1999. Expansion followed in Mexico, Chile, Switzerland and the United States, including investments in Universidad del Valle de México, Universidad de las Américas, Les Roches and Walden University. In 2003, the company decided to concentrate entirely on post-secondary education. It sold Sylvan's K-12 operations and the Sylvan brand to Apollo Management, then changed its corporate name to Laureate Education in 2004. Laureate acquired the remaining ownership of Walden University that year. The company was taken private in 2007 by an investor group led by Becker, allowing it to continue an acquisition-led international expansion strategy outside the public markets. By 2010, Laureate said it owned more than 50 institutions in 21 countries and served roughly 550,000 students. Its network included both traditional campuses and online institutions. The company expanded in Latin America and other emerging markets, while also building relationships intended to strengthen its global education platform. Bill Clinton served as honorary chancellor between 2010 and early 2015. In 2013, the International Finance Corporation invested $150 million in Laureate, and Laureate acquired the Brazilian university chain Centro Universitário das Faculdades Metropolitanas Unidas for $412 million. The company also invested in Coursera and announced a partnership with Thunderbird School of Global Management, although the Thunderbird arrangement generated debate among trustees and alumni about the role of a for-profit education company. Laureate's international scale reached a peak during the middle of the 2010s. In 2014, the company reported approximately $4 billion in revenue and ownership of 75 schools in 30 countries. It filed for an initial public offering in 2015 while disclosing substantial debt, and the offering was designed partly to reduce leverage. Laureate became a certified benefit corporation at the end of 2015. In 2016, it sold several hospitality-education campuses, including institutions associated with Glion and Les Roches, to Eurazeo. The company returned to public ownership in February 2017, when its shares began trading on Nasdaq. Its offering materials described a network of more than one million students and more than 200 campuses in 28 countries. Later that year, Becker announced his departure as chief executive, and Eilif Serck-Hanssen succeeded him in 2018. The company then shifted from rapid expansion to portfolio simplification. It sold or exited institutions in Morocco, China, Malaysia, Italy, Cyprus, Turkey, Australia, New Zealand, Chile, Brazil, the United Kingdom and other markets. Several schools were closed or transferred, and Laureate stopped enrolling new students in certain programs. The retrenchment was accompanied by scrutiny of the company's financial position and Brazilian operations. Moody's characterized Laureate's corporate bonds as high-risk in 2015, while later reporting described significant long-term debt and letters of credit supporting student-aid obligations. In 2019, a Brazilian investigation reported allegations by teachers concerning employment practices and academic administration. The company continued to reorganize its holdings while responding to changing demand and the operational disruption caused by COVID-19. In 2020 and 2021, Laureate executed its largest divestitures. It agreed to sell its Australian and New Zealand schools to Strategic Education, Walden University to Adtalem for $1.48 billion and its Brazilian operations to Anima Holding after a higher competing offer of $765 million. By 2021, Laureate's continuing operations were focused on Mexico and Peru. The remaining network included Universidad del Valle de México, Universidad Tecnológica de México, CIBERTEC, Universidad Peruana de Ciencias Aplicadas and Universidad Privada del Norte. The company reported approximately 349,000 students in those two markets as of June 2021 and planned to continue as a public company while restoring in-person education.

• 2021

  Focus narrows to Mexico and Peru

  [1]Laureate Educationen.wikipedia.org

  Following the Walden and Brazilian transactions, Laureate identifies Mexico and Peru as its principal continuing markets.

• 2020

  Portfolio review and major divestitures

  [1]Laureate Educationen.wikipedia.org

  Laureate announces a strategy review and agrees to sell several international operations, including Walden University and businesses in Australia, New Zealand and Brazil.

• 2017

  Return to public markets

  [1]Laureate Educationen.wikipedia.org

  Laureate begins trading on Nasdaq following an initial public offering.

• 2015

  Benefit corporation certification

  [1]Laureate Educationen.wikipedia.org

  Laureate becomes a certified benefit corporation and later files for a public offering.

• 2013

  International Finance Corporation investment

  [1]Laureate Educationen.wikipedia.org

  The International Finance Corporation makes a $150 million equity investment to support expansion in emerging higher-education markets.

• 2007

  Laureate becomes privately held

  [1]Laureate Educationen.wikipedia.org

  An investor group led by Douglas Becker acquires the company.

• 2004

  Company adopts the Laureate Education name

  [1]Laureate Educationen.wikipedia.org

  The former Sylvan post-secondary division changes its name to Laureate Education and acquires full control of Walden University.

• 2003

  Exclusive focus on post-secondary education

  [1]Laureate Educationen.wikipedia.org

  The business exits its K-12 activities and concentrates on higher education.

• 1999

  First major university acquisition

  [1]Laureate Educationen.wikipedia.org

  The company acquires Universidad Europea de Madrid in Spain.

• 1998

  Sylvan International Universities is created

  [1]Laureate Educationen.wikipedia.org

  Douglas Becker establishes a post-secondary education division within Sylvan Learning Systems.

A multinational higher-education platform focused on operating and scaling universities and colleges, particularly in emerging and middle-income markets. Laureate has positioned its network around expanding access to post-secondary education while offering programs across academic, professional and applied disciplines.

• University network

  Universidad del Valle de México

  A Mexican university network and one of Laureate's principal continuing operations. It provides undergraduate and graduate education across a broad range of academic and professional fields and was described as the largest institution in Laureate's network during the company's expansion period.

• University network

  Universidad Tecnológica de México

  A Mexican higher-education institution in Laureate's continuing portfolio. Its programs contribute to the group's focus on accessible, career-oriented undergraduate and graduate education in Mexico.

• University

  Universidad Peruana de Ciencias Aplicadas

  A Peruvian university in Laureate's continuing network, offering higher education in applied and professional disciplines at undergraduate and graduate levels.

• University

  Universidad Privada del Norte

  A private Peruvian university operated within Laureate's remaining Latin American platform. It forms part of the company's strategy to concentrate resources on higher-education demand in Peru.

• Technical and professional higher education

  CIBERTEC

  A Peruvian institution in Laureate's continuing portfolio focused on technical, professional and applied higher education. It complements the group's university offerings in Peru.

• Online university

  Walden University

  An online higher-education institution that Laureate first invested in and later controlled fully. Walden became one of Laureate's most prominent assets before being sold to Adtalem in a transaction announced in 2020 and completed in 2021.

• 2019

  Allegations concerning Brazilian academic and employment practices

  A Brazilian investigative report described allegations from approximately a dozen teachers concerning dismissals, allegedly forged documents and the assignment of instructors to subjects outside their expertise. The report followed the dismissal of approximately 150 teachers in December 2018 and concerned Laureate's Brazilian operations.

  Source

Read more

• 2021

  Complete sale of Brazilian operationsM&A

  Background

  Laureate was seeking to exit Brazil as part of its geographic consolidation strategy.

  Action taken

  After receiving a higher competing offer, Laureate sold 11 Brazilian institutions to Anima Holding.

  Aftermath

  The transaction completed Laureate's withdrawal from Brazil and left Mexico and Peru as its principal continuing markets.

  Transaction value. $765 million (Completed May 2021)

  • Ser Educacional — Ser Educacional initially agreed to acquire the Brazilian operations for $724 million, but Anima Holding later submitted a higher offer.

  Source

• 2020

  Narrow the geographic portfolioStrategy

  Background

  Laureate faced leverage and operational complexity across a large multinational network.

  Action taken

  The company reviewed its markets and pursued sales of institutions in Australia, New Zealand, Brazil and other countries, while emphasizing Mexico and Peru.

  Aftermath

  By 2021, most divestitures had been completed and the continuing business was concentrated in Mexico and Peru.

  Source

• 2020

  Agree to sell Walden UniversityM&A

  Background

  Laureate's portfolio review identified Walden as an asset that could be sold to reduce complexity and generate cash.

  Action taken

  Laureate agreed to sell Walden University to Adtalem Global Education.

  Aftermath

  The sale was completed in 2021 and was followed by a cash distribution plan for eligible stockholders.

  Transaction value. $1.48 billion (Announced 2020; completed 2021)

  Source

• 2017

  Launch initial public offeringOther

  Background

  Laureate carried substantial debt after years of international expansion and disclosed that its public offering would help reduce leverage.

  Action taken

  The company offered 35 million shares and began trading on Nasdaq.

  Aftermath

  The shares opened at $14 and closed the first trading day at $13.25, while Laureate resumed life as a public company.

  IPO proceeds. $490 million (February 2017)

  Source

• 2013

  Acquire Brazilian university chain FMUM&A

  Background

  Laureate sought to expand in Brazil amid expectations of growing demand from the country's middle class.

  Action taken

  Laureate acquired Centro Universitário das Faculdades Metropolitanas Unidas for $412 million.

  Aftermath

  The acquisition increased Laureate's Brazilian presence before the company later exited the country.

  Acquisition price. $412 million (2013)

  Source

• 2003

  Concentrate exclusively on higher educationStrategy

  Background

  Sylvan Learning Systems operated both K-12 education businesses and a post-secondary division.

  Action taken

  The company sold its K-12 units and the Sylvan name, making post-secondary education its sole strategic focus.

  Aftermath

  The business was renamed Laureate Education in 2004 and expanded internationally through university acquisitions.

  Source

1. 1Laureate Educationen.wikipedia.org