Corinthian Colleges to Buy Canada’s CDI
Corinthian Colleges Inc., which runs vocational and technical training schools in 21 U.S. states, agreed to buy CDI Education Corp. for $32 million in cash to expand into Canada, its third acquisition this month.
Corinthian will pay $3.18 a share, a 1.9% premium over CDI’s closing price on June 10, the last time it traded, Corinthian said.
The Santa Ana-based company also will assume about $5 million of CDI’s debt. CDI has 9.9 million shares outstanding.
CDI Chief Executive Bruce McKelvey and other members of management, who own 67% of Toronto-based CDI’s stock, have agreed to sell their shares, Corinthian said. The company will pay for the purchase through a $100-million line of credit and cash.
CDI runs post-secondary schools and corporate training centers at 60 campuses across Canada.
Shares of Corinthian rose 49 cents to $47.09 on Nasdaq.
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