Perdoceo Targets South University in Health Sciences Expansion

Perdoceo Education is putting up as much as $150 million at closing to acquire South University, a move that would turn the 127-year-old institution into the latest for-profit asset in the company’s growing health sciences portfolio.

The agreement, signed September 14, also includes $18 million in deferred consideration payable over 24 months and up to $56 million in earn-out payments tied to South’s earnings performance through 2029. The closing payment is expected to land between $130 million and $150 million after adjustments for cash, working capital, debt-like items and transaction expenses.

Perdoceo plans to fund the purchase with cash on hand. The deal is expected to close as early as April 2027, although it still requires education regulators, accreditors and other authorities to sign off. The agreement can be terminated under certain conditions if it has not closed by July 9, 2027.

South University generated approximately $291 million of unaudited revenue and $34 million of adjusted operating income in 2025, according to Perdoceo’s disclosure. It served roughly 10,500 students through 11 campuses in Georgia, Florida, Alabama, South Carolina, Virginia, Texas and North Carolina, alongside its online operation.

That revenue base gives Perdoceo a sizable addition relative to its existing platform. The company reported $846.1 million of revenue in 2025, while enrollment across Colorado Technical University, the American InterContinental University System and the University of St. Augustine for Health Sciences reached 46,830 students as of June 30, 2026.

The strategic appeal is concentrated in programs that lead to professional licenses. South offers graduate programs in physician assistant studies, anesthesia and nursing, along with pharmacy and nursing degrees. Perdoceo said it intends to spend on clinical placement capacity, faculty, academic support, simulation technology and licensure exam preparation.

The company expects the acquisition to immediately add to adjusted operating income beginning in 2027, with further growth anticipated in 2028. That forecast depends on retaining students, maintaining program approvals and converting South’s nonprofit structure to a for-profit model without disrupting operations.

For Perdoceo, the transaction extends a pattern of using its cash-rich balance sheet to buy specialized institutions rather than relying solely on enrollment growth at its existing brands. The earn-out structure also shifts part of the purchase price onto future performance.

South has changed control several times since 2017. Perdoceo is betting that its next owner can make the health sciences franchise more durable.