CHANDLER, Ariz., Aug. 1, 2022
/PRNewswire/ -- Zovio (Nasdaq: ZVO), an education technology
services company that partners with higher education institutions
and employers, announced today that it has closed on an agreement
to transition its online program management (OPM) business to the
University of Arizona Global Campus
(UAGC).
Over the past six months, Zovio has taken steps to implement a
process designed to unlock shareholder value by rightsizing the
company, accelerating growth of subsidiaries and exploring
strategic alternatives, which included the potential divestiture of
all three of its businesses.
In May 2022, Zovio completed the
sale of TutorMe, for $55 million and
used a portion of the proceeds to repay bridge financing.
This left the company debt free and allowed Zovio to satisfy
obligations stemming from a decision of the Superior Court of
California while the company
appeals the decision.
Continuing to execute on its strategic alternatives process,
Zovio and UAGC negotiated, signed and closed on an asset purchase
agreement with an effective date of July 31,
2022, after receiving approval from their respective Boards
of Directors. Under the asset purchase agreement, UAGC is
acquiring Zovio's operations and assets that previously provided
services to UAGC through a long-term Strategic Services
Agreement.
"Zovio has been at the forefront of providing innovative online
learning products and services for almost two decades," Zovio Chief
Executive Officer, Randy Hendricks
said. "We are pleased to have reached this agreement with UAGC and
are excited about their future," Hendricks concluded.
Zovio will continue to support the continued growth and
expansion of Fullstack Academy and simultaneously explore strategic
alternatives for that business.
About Zovio
Zovio (Nasdaq: ZVO) is an education
technology services company that partners with higher education
institutions and employers to deliver innovative, personalized
solutions to help learners and leaders achieve their aspirations.
The Zovio network, including Fullstack Academy, leverages its core
strengths to solve priority market needs through education
technology services. Using proprietary advanced data analytics,
Zovio identifies the most meaningful ways to enhance the learner
experience and deliver strong outcomes for higher education
institutions, employers, and learners. Zovio's purpose is to help
everyone be in a class of their own. For more information, visit
www.zovio.com.
Contact: Vickie Schray
vickie.schray@zovio.com
866 475 0317 x10003
View original content to download
multimedia:https://www.prnewswire.com/news-releases/zovio-announces-agreement-to-divest-opm-business-to-university-of-arizona-global-campus-301596567.html
SOURCE Zovio
