December 4, 2023


education gives you strength

Strategic Education, Inc. Announces Public Offering of Common Stock

Strategic Education, Inc. (Strategic Education) (NASDAQ: STRA) announced today it has commenced an underwritten registered public offering of $175 million of shares of its common stock. In addition, Strategic Education intends to grant the underwriters an option for 30 days to purchase up to $26.25 million of additional shares of its common stock. There can be no assurances as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Strategic Education intends to use a portion of the net proceeds of the offering to fund, in part, the cost of the proposed acquisition of Laureate Education, Inc.’s Australia and New Zealand operations, and the remainder for general corporate purposes, which could include future acquisitions, capital expenditures and working capital. The closing of the offering is not conditioned upon the consummation of the proposed acquisition. If the proposed acquisition is not consummated, Strategic Education intends to use the net proceeds of the offering for future acquisitions and general corporate purposes, which could include other acquisitions.

BofA Securities and Truist Securities are acting as joint lead book-running managers for the offering.

The offering is being made pursuant to an effective shelf registration statement and preliminary prospectus supplement filed by Strategic Education with the Securities and Exchange Commission (SEC). The preliminary prospectus supplement related to the offering will be available on the SEC’s website located at Copies of the preliminary prospectus supplement and accompanying base prospectus relating to the offering may be obtained from BofA Securities, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, North Carolina 28255-0001, Attn: Prospectus Department, or by emailing: [email protected]; or from Truist Securities, 3333 Peachtree Road NE, 9th floor, Atlanta, Georgia 30326, Attention: Prospectus Department, email: [email protected].

This press release does not constitute an offer to sell or the solicitation of an offer to buy Strategic Education’s common stock nor shall there be any sale of such common stock in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This communication contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as “expect,” “estimate,” “assume,” “believe,” “anticipate,” “may,” “will,” “forecast,” “outlook,” “plan,” “project,” “potential” and other similar words, and include all statements that are not historical facts, including with respect to, among other things, the expected timing, size, terms and Strategic Education’s ability to complete the offering; Strategic Education’s anticipated use of proceeds from the offering; and the completion of the proposed acquisition of Laureate Education, Inc.’s Australia and New Zealand operations and the timing thereof. The statements are based on Strategic Education’s current expectations and are subject to a number of assumptions, uncertainties and risks, including but not limited to:

  • the pace of student enrollment;
  • Strategic Education’s continued compliance with Title IV of the Higher Education Act of 1965, as amended, and the regulations thereunder, as well as other federal laws and regulations, regional accreditation standards, and state regulatory requirements;
  • rulemaking by the U.S. Department of Education and increased focus by the current or future U.S. Congresses or Administrations on for-profit education institutions;
  • competitive factors;
  • risks associated with the further spread of COVID-19, including the ultimate effect of COVID-19 on people and economies;
  • risks associated with the opening of new campuses;
  • risks associated with the offering of new educational programs and adapting to other changes;
  • risks associated with the acquisition of existing educational institutions, including in the case of the proposed acquisition of Laureate Education, Inc.’s Australia and New Zealand operations, the risk that the acquisition may not be completed in a timely manner or at all, the risk that the benefits of the acquisition may not be fully realized or may take longer to realize than expected, and the risk that the acquisition may not advance Strategic Education’s business strategy and growth strategy;
  • risks related to the timing of regulatory approvals;
  • Strategic Education’s ability to continue to implement its growth strategy;
  • the amount of the costs, fees, expenses, and charges related to Strategic Education’s merger with Capella;
  • the risk that the merger with Capella may not advance Strategic Education’s business strategy and growth strategy;
  • the risk that Strategic Education may experience difficulty integrating Strayer’s and Capella’s employees or operations;
  • the potential diversion of our management’s attention resulting from the merger with Capella;
  • risks associated with the ability of students to finance their education in a timely manner;
  • general economic and market conditions; and
  • additional factors described in Strategic Education’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Many of these risks, uncertainties and assumptions are beyond Strategic Education’s ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, these forward-looking statements speak only as of the information currently available to Strategic Education on the date they are made, and Strategic Education undertakes no obligation to update or revise forward-looking statements, except as required by law. Actual results may differ materially from those projected in the forward-looking statements.

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For more information contact:
Daniel Jackson
Chief Financial Officer
Strategic Education, Inc.
(703) 713-1862
[email protected]

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