TEMECULA, Calif. - Legacy Education Inc. (NYSE American: LGCY), a for-profit post-secondary education company, has entered into an agreement to acquire substantially all assets of Contra Costa Medical Career College, a Northern California-based institution. The $8 million deal, announced Today, will be paid through a combination of cash, a promissory note, and company shares. The acquisition is contingent upon customary closing conditions and regulatory approvals.
Contra Costa Medical Career College, with over 500 students, offers 14 allied health programs. The acquisition will add programs like surgical technology and sterile processing to Legacy Education’s portfolio, and expand its campus presence in California.
LeeAnn Rohmann, CEO of Legacy Education, stated, "This acquisition will strengthen our ongoing commitment to quality healthcare education and enable us to expand our impact in Northern California."
Legacy Education, founded in 2009, is known for providing career-focused education primarily in healthcare. It aims to grow through enrollment increases, new programs, and strategic acquisitions.
The transaction details were disclosed in Legacy's Form 8-K. The successful completion of this acquisition will mark the addition of a sixth campus to Legacy Education’s network in California.
The press release also contained forward-looking statements regarding the anticipated benefits of the acquisition and its alignment with Legacy Education’s growth strategy. These statements are subject to risks and uncertainties, and actual results may differ materially.
This report is based on a press release statement from Legacy Education Inc.
In other recent news, Legacy Reserves has been making significant strides in its growth trajectory. Northland has initiated coverage of Legacy Reserves with an Outperform rating, indicating an optimistic view on the company's future performance. This comes as Legacy Reserves continues to expand its student base through strategic acquisitions, such as the recent Letter of Intent to acquire an additional college, which is expected to further increase its student body by approximately 500.
Additionally, Ladenburg Thalmann has assigned a new Buy rating to Legacy Reserves, with a price target set at $8.20. This development comes as the company continues to diversify its educational offerings through strategic acquisitions, aligning its career-oriented programs with labor market demands.
In the realm of financial developments, Legacy Education Inc., associated with Legacy Reserves, announced the pricing of its initial public offering (IPO) at $4 per share, intending to offer 2.5 million shares. This move is projected to raise $10 million before underwriting discounts and offering expenses. The IPO, led by Northland Securities, Inc. and Ladenburg Thalmann, includes a 30-day option for underwriters to purchase up to an additional 375,000 shares to cover over-allotments. These are among the recent developments for Legacy Reserves and Legacy Education Inc.
InvestingPro Insights
Legacy Education Inc.'s (NYSE American: LGCY) recent acquisition announcement aligns with its growth strategy, and InvestingPro data provides additional context to this development. The company's market capitalization stands at $62.19 million, reflecting its current market valuation as it pursues expansion.
LGCY's financial health appears robust, with InvestingPro data showing a revenue growth of 29.74% over the last twelve months. This growth trajectory supports the company's ability to fund acquisitions like the Contra Costa Medical Career College deal. Moreover, the company's gross profit margin of 42.71% indicates a healthy operational efficiency, which could be further enhanced by integrating the new asset.
InvestingPro Tips highlight that LGCY holds more cash than debt on its balance sheet, suggesting financial stability to support its acquisition strategy. Additionally, the company's liquid assets exceed short-term obligations, providing further reassurance about its ability to manage the $8 million transaction.
The market seems to be responding positively to LGCY's growth initiatives, with InvestingPro data showing a strong 26.37% return over the last three months. This aligns with another InvestingPro Tip indicating a large price uptick over the last six months, potentially reflecting investor confidence in the company's expansion plans.
For investors seeking a deeper understanding of LGCY's financial position and growth prospects, InvestingPro offers 8 additional tips, providing a comprehensive view of the company's potential.
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