University of Idaho, University of Phoenix terminate acquisition deal

After more than two years to work towards finalizing a deal, two universities have agreed to terminate an acquisition and part ways.

On June 3, University of Idaho and University of Phoenix announced that the schools jointly agreed to end efforts for U of I to acquire UOPX through nonprofit organization Four Three Education.

The talks began in spring of 2023 when U of I saw the acquisition of UOPX as a way to reach more adult learners through an online system. It also looked at UOPX’s partnerships with different industries to provide workforce training as a benefit to Idaho.

Several missed deadlines and setbacks kept the purchase from happening, U of I stated.

“Legal challenges around the open meetings laws from the Idaho Attorney General, as well as concerns from the Idaho Legislature about process and authority, pushed the conversations past the first agreement deadline,” a press release from U of I stated. An extension was granted last June to allow the schools to continue working on a deal. “That extension also provided U of I with $5 million at the time of signing and, in return, opened the door for UOPX to explore other options.”

University of Phoenix stated that since that extension, exploring other “strategic” options is exactly what it has done.

“While we have decided not to move forward, we remain appreciative of President Scott Green, the leadership of the University of Idaho, and the many elected officials in Idaho who supported this process,” said Chris Lynne, president of UOPX. “Our university’s innovative, flexible learning model ― designed specifically for nontraditional students ― continues to drive strong outcomes and demand for its degrees, credentials and student support services.”

The costs and distractions from pursuing the deal were also factors in ending the agreement, Green stated.

“Although we continue to see great value in University of Phoenix, it has become cost prohibitive, and potentially distracting to our other work, to continue conversations,” he said. “We respect the University of Phoenix and wish them all the best. We appreciate their commitment to these conversations, and we learned many things we may be able to incorporate into our work.”

On June 5, a special meeting will be held by U of I with its board of regents. At that meeting, the university will ask the board to approve a termination agreement, officially ending talks with UOPX. If the board approves it, the agreement will end the acquisition conversations and “pay a termination fee of $17.24 million, with credit for the $5 million already paid for the extension agreement in June 2024. This will fully reimburse U of I for out-of-pocket expenditures incurred while working toward closing the transaction.”

University of Phoenix stated it “will continue to operate as an independent, private institution, focused on advancing its leadership in adult education and delivering career-relevant learning experiences that help students succeed in a rapidly changing workforce.”