Oct 24 (Reuters) - Career Education Corp said itwill sell its European education business to private equity firmApax Partners for about $305 million, sending its shares up morethan 50 percent in extended trading on Thursday.
The sale - valued at more than Career Education's marketcapitalization - includes its entire international schoolsbusiness, comprising the Paris-based INSEEC Group and theInternational University of Monaco.
The for-profit education provider will receive about $276.5million when the deal is closed, taking into account variousadjustments, the company said.
"Redeploying capital from Europe to the United States is theright move for Career Education. It will help us best serve thevast majority of our students, who are U.S.-based," ChiefExecutive Scott Steffey said in a statement.
The transaction is expected to close before the end of theyear, the company said.
The company agreed in August to pay $10.25 million to settlea New York state probe into accusations that it had inflated jobplacement rates to attract students.
Careeer Education announced in November that it would shut23 campuses due to losses and falling enrollments. The companysaid at the time that it had 90 campuses.
Morgan Stanley & Co LLC acted as Career Education`sexclusive financial adviser for the deal.
The company's shares were trading at $5.75 at 04.37 p.m. ET,after closing at $3.80 on the Nasdaq. At $3.80, the company hada market value of about $255 million.
- Investment & Company Information