Education provider Corinthian Colleges Inc said it agreed to acquire Heald Capital, the parent company of Heald Colleges, in a cash deal valued at about $395 million, including debt.
Corinthian, which provides short-term courses in fields such as healthcare, criminal justice and mechanical, said it would finance the acquisition with a combination of cash and debt, using its $280 million credit facility.
Heald currently operates 11 campuses and offers courses in healthcare, legal and technology. It expects to begin enrollment for online students in early 2010.
Heald is expected to generate revenue of about $180 to $185 million for the fiscal year ending Dec. 31.
The acquisition will slightly add to earnings in the second half of fiscal 2010 and add about 15 to 20 cents a share to 2011 earnings, Corinthian said in a statement.
Shares of Corinthian closed at $17.63 Monday on Nasdaq.
(Reporting by Amulya Nagaraj in Bangalore; Editing by Ratul Ray Chaudhuri)