ITT Educational Services, Inc. (ESI) acquired Cable Holdings, LLC that operates as Benchmark Learning on Aug 1, 2013. This Minneapolis-based company offers short courses in IT and business learning solutions to working professionals. Post-acquisition, Benchmark Learning will be integrated with ESI’s The Center for Professional Development at ITT Technical Institute.
Benchmark Learning will benefit from ESI’s nationwide presence. Its integration with ESI will strengthen its position as a provider of professional courses in the IT sector.
ITT Educational Services is a leading provider of post-secondary degree programs in the United States. The company offers associate and bachelor's degree programs in business, criminal justice, electronics, drafting, health science and a variety of information technology-related fields.
The acquisition of Benchmark Learning is in line with ESI’s growth strategy of offering career oriented programs. We believe the acquisition will boost revenues and enrollment growth at ITT Educational Services, given the strong demand for training programs in the IT industry.
Last month, ITT Educational Services announced second quarter 2013 results. The company witnessed double-digit year- over-year decline in revenues and earnings in the second quarter of 2013 due to decline in total enrollment and margin contraction. However, new enrollments grew in the high single digit range in the quarter.
ITT Educational Services carries a Zacks Rank #3 (Hold).
Education stocks such as Capella Education Co. (CPLA), Grand Canyon Education, Inc. (LOPE) and TAL Education Group (XRS) are currently performing well and are worth considering. Capella carries a Zacks Rank #1 (Strong Buy), whereas Grand Canyon and TAL Education carry a Zacks Rank #2 (Buy).
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