Advisory Board Co Shares Rise 6% Off Halt; Sells Healthcare, Education Businesses for $2.58 Bln

The Advisory Board Company (ABCO) shares added 6% in pre-market trade, coming off a trading halt, after the company said it has agreed to sell its health care business to Optum, and its education business to affiliates of Vista Equity Partners, for a total $2.58 billion.

The Advisory Board Company said its shareholders would receive estimated cash per share of $54.29, which includes a fixed amount of $52.65 per share and the after-tax value at closing of the company’s 7.6% stake in Evolent Health (EVH), which has been estimated as of Aug. 28. The total merger transaction value, including the after-tax proceeds for the sale of the education business, is approximately $2.58 billion.

Prior to the closing of the merger of the health care business with Optum, affiliates of Vista will acquire the company’s education business, including Royall & Company, for $1.55 billion.

Following the closing of the education transaction, the company’s health care business will merge with Optum for $1.3 billion, including the assumption of The Advisory Board Company’s debt.

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