11:00 AM EDT, 07/16/2024 (MT Newswires) -- Perdoceo Education ( PRDO ) said Tuesday that it has entered a definitive deal to acquire the University of St. Augustine for Health Sciences for an expected amount of $142 million to $144 million in cash.

If the deal is axed, Perdoceo said it will be liable to pay the seller a termination fee of either $4 million, $10 million or $20 million.

Perdoceo said it plans to fund the acquisition using cash on hand and expects the deal to be accretive to the company's adjusted operating income immediately beginning in 2025 and provide additional growth in adjusted operating income in 2026.

The transaction is set to close in December, subject to certain customary conditions and regulatory approvals, the company said.

Perdoceo said it is affirming its full-year adjusted operating income outlook of $175 million to $190 million.

Shares of the company rose 3.2% in recent trading.

Price: 22.71, Change: +0.70, Percent Change: +3.18