WyoTech Sold To Zenith Education Group
WyoTech in Laramie will soon be acquired by Zenith Education Group, Inc. It was announced yesterday that Corinthian Colleges, Inc. has signed a definitive agreement with Zenith, an affiliate of the non-profit corporation ECMC Group, Inc., under which Zenith will acquire 56 WyoTech and Everest campuses in 17 states. Zenith will also acquire Everest Online Programs.
The $24 million agreement marks the sale of all of Corinthian’s Everest and WyoTech campuses not within the state of California. These schools serve about 39,000 students.
"Everest and WyoTech students will benefit greatly from ECMC Group's commitment to students and its goal of making a positive difference in career education," said Jack Massimino, Chairman and CEO of Corinthian Colleges. "ECMC will focus significant resources on student programs and services and enhance the future prospects of Everest and WyoTech."
The agreement comes after Corinthian Colleges was put on increased monitoring by the U.S. Department of Education in June after they failed to provide documentation to address concerns that they were falsifying job placement data in marketing claims to students and allegations of altering grades and attendance records. An agreement with the U.S. Department of Education that became effective in July required Corinthian to teach out and close 12 of its schools and pursue selling many others.
In addition to taking on the non-California U.S. campuses, Zenith will acquire the 12 teach-out schools, which will be closed after the current students graduate.
Guy Warpness, Laramie Campus President, says that after the agreement in July, the school fully expected to sell.
“I had no doubt that we would sell, just didn’t know when,” said Warpness. “I think it’s got to be a big relief for my people because of the uncertainty that was out there. I think they’re feeling a lot more comfortable now.”
He adds that the sale is not expected to change the staffing at WyoTech, and students will continue to get a quality education.
The acquisition is expected to close in January 2015, subject to regulatory approvals and other conditions. With Zenith's purchase of Everest and WyoTech schools, ECMC Group plans to create the largest system of nonprofit career schools in the country.
Corinthian still owns Heald College, the Everest and WyoTech campuses in California, and 14 Everest campuses in Canada. Corinthian plans to continue operating these schools until suitable buyers are found.
To learn more about the agreement, view the form filed with the Securities and Exchange Commission by clicking here.
For a complete list of schools sold, click here.