In its first major acquisition, Capella Education Co. said Friday it has acquired a British online education provider for about $15 million.
The Minneapolis-based parent of Capella University has purchased Resource Development International Inc. (RDI), an independent provider of distance learning qualifications in the United Kingdom and other countries abroad.
Founded more than 20 years ago, RDI partners with top universities in the U.K. to develop and deliver online courses. The company reported about $13.8 million in revenue in fiscal 2010.
RDI has applied to the British government for "Taught Degree Awarding Powers," which would enable it to independently validate its own degrees under the governmental body that reviews standards and quality for all U.K. universities. If it's granted, Capella will make an additional payment of $6.4 million to RDI.
The cash transaction is expected to be accretive to Capella's earnings by 2013 and "mostly dilutive" in 2011 and 2012, the company said.
"RDI's position in both the global and the underserved U.K. higher education market, combined with its focus on U.K. university programs, dedication to academic quality and strong cultural fit make RDI an ideal partner for Capella as we further expand into the international market," said Kevin Gilligan, Capella chairman and CEO.
Shares closed Friday at $44.71, up 2.5 percent.
Capella, which went public in 2006 and has an enrollment of 38,000, is one of the nation's larger for-profit colleges.
Janet Moore • 612-673-7752
