DLA Piper advised as outside corporate counsel for Grand Canyon Education, Inc (Nasdaq: LOPE) (GCE) in its sale of Grand Canyon University (GCU) to a nonprofit entity that will retain the GCU name. The transaction returns GCU to its historical roots as a nonprofit university to ensure the long-term legacy of both GCU and GCE.
GCE has transferred to GCU the real property and improvements comprising the GCU campus as well as tangible and intangible academic and related operations and assets related to GCU. The purchase price, following post-closing adjustments, will be approximately US$875 million, which GCU paid through the issuance of a seven-year, senior secured note. As part of the transaction, GCE and GCU also entered into a long-term master services agreement in which GCE will provide technological, marketing, promotional, financial aid and other support services to GCU.
For Phoenix-based GCE, the sale allows that organization to continue as a tax-paying, multi-billion-dollar market cap, publicly traded company in the fast-growing educational services industry.
The DLA Piper team representing Grand Canyon Education was led by partner David Lewis (Phoenix), and included partners R. Jared Jensen (Phoenix) and Jamie Knox (New York); of counsel Laura Kam (Phoenix); and associates Sarah Stanton, Michael Duval (both Phoenix), and Emily Sanders (New York).