Adtalem Global Education (ATGE) Announces $150M Accelerated Share Buyback

Adtalem Global Education, Inc. (NYSE: ATGE), a leading healthcare educator, today entered an accelerated share repurchase (“ASR”) agreement with Morgan Stanley & Co. LLC (“Morgan Stanley”) to repurchase $150 million of the company’s common stock. In addition to the $150 million ASR program, the Adtalem board of directors also authorized open market share repurchases of up to $300 million of the company’s common stock over the next 36 months, both of which were previously announced on March 1, 2022.

“The accelerated share repurchase program and open market purchase authorization evidence our firm belief that the Adtalem equity is undervalued and our confidence in the long-term prospects of the company,” said Steve Beard, president and CEO of Adtalem Global Education. “We will begin to bridge the gap between the intrinsic value of our assets and the market capitalization of the company through this action and an ongoing commitment to improved operational performance.”

The company is funding the ASR with existing cash resources. Under the terms of the agreement, Adtalem will receive an initial share delivery of approximately 4.7 million shares, with the final settlement scheduled to occur no later than the second quarter of fiscal year 2023. The final number of shares to be repurchased by the company under the ASR will be based on the volume-weighted average stock price of Adtalem’s common stock during the term of the agreement, less a discount and subject to adjustments.

Morgan Stanley has acted in the sole capacity of principal counterparty to Adtalem in connection with the negotiation and execution of the ASR.

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