Kaplan Inc. to Sell 38 Colleges to Education Corp. of America

Kaplan Inc. is selling 38 of its colleges, including TESST College of Technology and Texas School of Business locations, to another operator of for-profit colleges, the Education Corporation of America, for an undisclosed price. The two companies jointly announced the all-stock transaction on Thursday.

The institutions Kaplan is selling enroll more than 12,500 students. When combined with the Education Corporation’s existing campuses in 20 states—including Virginia College, the Golf Academy of America, the Ecotech Institute, and the New England College of Business—ECA will have an enrollment of about 30,000.

Kaplan will continue to own Kaplan University and Mount Washington College, as well as colleges overseas, primarily in Australia, Britain, Ireland, and Singapore.