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Education Management to buy Argosy Education Group for 1.76 times revenue

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The Deal:. Education Management Corp. has agreed to purchase Argosy Education Group Inc. for $78 million. The acquisition is a move by Education Management to expand its degree offerings. After news of the transaction was announced, shares of Argosy gained $2.39 to $11.58, while Education Management shares lost 95 cents to close at $38.20.

Discussion: Argosy Education Group offers degrees and diplomas in fields such as psychology, business and information technology. It operates 17 campuses in nine states and Ontario, Canada. Among its schools are the American Schools of Professional Psychology, which offers graduate degrees in clinical psychology, ...

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