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American Public (APEI) Acquires Training Provider GSUSA

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American Public Education, Inc. (APEI - Free Report) has acquired a leading training provider to the federal workforce, namely Graduate School USA or GSUSA. This buyout will enable American Public to enter into the workforce career training market. The financial terms of the transaction have been kept under wraps.

The acquired assets of GSUSA will operate as a new stand-alone unit of American Public.

Buyout Synergies

GSUSA, based in Washington, DC, offers training (both in-person and through virtual learning) to the federal workforce and has a wide-ranging group of government agency customers. This buyout will enhance American Public’s foothold in training and degrees that provide employment and career advancement.

The GSUSA mission is closely aligned to American Public’s focus on "Educating the Service-minded". It also complements American Public University System's (APUS) core military and veteran student populations as well as the nursing and healthcare student populations at Rasmussen University and Hondros College of Nursing.

In connection with the GSUSA buyout, American Public CEO Angela Selden said, “Educating service-minded students is the common thread that knits together our shared mission, and we are excited to welcome GSUSA's strong federal training capabilities to the APEI family.”

GSUSA — which possesses more than 100 government agencies — provides services via customized contract training to federal agencies and through open enrollment to government professionals. It has more than 300 courses aimed at federal professional development and leadership training.

APEI’s Strategic Initiatives

American Public is one of the leading providers of post-secondary education to the military. Active-duty military was a major contributor to American Public’s 2020 revenues. The majority of the company’s students serve in the U.S. military. Its courses have been specifically designed to suit online studies and its faculty is specially trained for online teaching. Online programs are well suited for the unpredictable and demanding work schedules of military personnel who are required to travel and relocate frequently and have limited financial resources.

The company has adopted a geographical approach to marketing, which focuses on using cost-effective channels and aims to reach out to college-ready students who are more likely to succeed. Also, it aims to strengthen digital marketing campaigns to leverage relationships with military, public service and other high-value student populations.

Zacks Investment ResearchImage Source: Zacks Investment Research

Although American Public has declined 19.3% over the past six-month period, it has fared better than the Zacks Schools industry’s 48.9% fall. American Public has been benefiting from strong visibility at Hondros College of Nursing. Also, initiatives like affordable tuitions, online programs, strategic efforts aimed at improving student success and strong digital marketing campaigns are commendable.

Zacks Rank

American Public currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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