Major affiliation agreement between state and online university extended

A deal for the University of Idaho to purchase online educational company University of Phoenix has been extended for another year.

On June 28, both the U of I board of regents and the Idaho State Board of Education agreed to extend the affiliation agreement between both schools. The original agreement expired on May 31, 2024, with the new agreement valid until June 10, 2025.

Plans for the original purchase were put on hold after legislation to move the sale forward failed in this year’s session.

“The merits of this affiliation have never been stronger,” said C. Scott Green, president of U of I. “The value to Idaho’s educational system, adult learners and Idaho’s industries is transformational. The affiliation also diversifies revenue streams and strengthens our financial future.”

According to a release from U of I, “University of Phoenix continues to show strong enrollment growth at 8% and continues to improve retention and graduation rates. Its adjusted EBITDA is well in excess of the $150 million forecasted a year ago and its free cash flow for the last year is well over $200 million. This affiliation will provide more opportunities to Idaho’s place-bound adult learners to earn more money and help Idaho industries by adding to Idaho’s educated workforce.”

Included in the extended agreement were stipulations stating:

• Non-exclusivity, allowing other potential buyers of University of Phoenix to be considered by its owners;



• in return for the ability of the University of Phoenix owners to entertain other offers, University of Idaho will receive $5 million upon signing of the extension agreement;



• if the deal is not closed by June 30, 2025, U of I will receive an additional $5 million (for a total of $10 million);



• and if University of Phoenix sells to another entity, U of I will receive $15 million (for a total of $20 million).

“With this decision, we now have more options,” said Kurt Liebich, member of the State Board of Education. “Will a deal happen? That will be up to the Legislature at the end of the day. This gives us time to work with legislators and try to come up with a potential solution. I think this optionality has a lot of value for the State of Idaho and our citizens.”

The board unanimously approved the extension.

Green stated that the focus remains on meeting the educational needs of the state’s adult learners.

“We have a statewide mission to serve all of Idaho as its land grant institution,” he said. “We must lead new ways of delivering education to our citizens. The needs of adult learners are growing and we need to be diligent in our efforts to meet that demand.”

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