LOUISVILLE, KY (November 1, 2007) – Chrysalis Ventures, a leading source of equity capital for young growth companies in the South and Midwest, announced today that its portfolio company Advanced Academics, Inc. (AAI), a leading provider of online secondary education, has been acquired by DeVry, Inc. (NYSE: DV), a global provider of educational services, for $27.5 million.
According to Chrysalis Ventures Chairman and Managing Director David A. Jones, Jr., who also chairs Advanced Academics’ board of directors, “This is an exciting move for Advanced Academics. The online high school market is expanding exponentially, and by joining the DeVry team AAI gains the capital and distribution resources to bring its great products and services to a significantly larger audience of students. Chrysalis is proud of its role in helping AAI grow to this point, and thanks the company’s management and entire team for their fine work.” Chrysalis Ventures’ co-investors in AAI include Council Ventures of Nashville, and Chisholm Private Capital Partners and American Fidelity Group, both of Oklahoma City.
Founded in 2000 and headquartered in Oklahoma City, OK, AAI partners with school districts to help high school students graduate and succeed. AAI supplements traditional classroom programs with online instruction using highly qualified teachers and a proprietary technology platform specifically designed for secondary education. AAI also operates virtual high schools in partnership with school districts and charter schools in six states. Since its inception AAI has delivered online learning programs to more than 20,000 students in more than 200 school districts.
“The acquisition of Advanced Academics is an investment in a high-growth market, and consistent with our strategy of aggressive growth in online education,” said Daniel Hamburger, president and CEO of DeVry Inc. “We also see opportunities to articulate high school graduates to our postsecondary offerings, and to enhance our existing relationships with high schools.”
“DeVry Inc. is a true pioneer and leader in career-focused education,” said Jeffrey A. Elliott, president and CEO of AAI. “We are extremely pleased to be joining an organization that has a proven track record of helping students achieve their educational and career goals. We believe we can grow AAI faster, with quality, by leveraging the resources, relationships and reputation of DeVry.” Mr. Elliott will continue to serve as president, and the existing AAI management team and employees will remain in place in Oklahoma City following the transaction.
According to the U.S. Department of Education, enrollment in online high school programs grew by 73 percent annually from 2000 to 2006. Eduventures, Inc., a leading provider of higher education research and consulting services, projects that revenue in this market will be $2 billion by 2011, compared to $325 million in 2006. Eighteen states currently allow online charter schools and 25 states have state-sponsored online school programs. Additionally, 36 percent of school districts offer some online learning programs, while 72 percent of school districts intend to increase online learning in the near future.
“The online high school market is poised for significant growth,” said Adam Newman, managing vice president at Eduventures. “This emergent market will have a significant impact on the future of K-12 education, as has been the case with online initiatives in the postsecondary market during the past decade.”
AAI is accredited by the North Central Association (NCA) and the Commission on International and Trans-Regional Accreditation (CITA). All AAI faculty hold bachelor’s or master’s degrees in their subject area, are state certified and have significant traditional classroom experience.
About Chrysalis Ventures
Founded in 1993, Chrysalis Ventures is a leading source of equity capital for young growth companies in the Midwest and South. Chrysalis invests primarily in early-stage and expansion-stage companies in healthcare services and technology, media and communications, and business services. Based in Louisville, Kentucky, Chrysalis has more than $300 million under management and has made investments in over 50 companies. For more information, please visit www.chrysalisventures.com.
About Advanced Academics
Advanced Academics is a distance learning company that offers accredited secondary school courses for students in grades 7 – 12 via the Internet. For more information, please visit www.advancedacademics.com.
About DeVry, Inc.
DeVry Inc. (NYSE: DV) is the parent organization of DeVry University, Ross University, Chamberlain College of Nursing and Becker Professional Review. DeVry University, which includes Keller Graduate School of Management, offers associate, bachelor’s and master’s degree programs in technology, healthcare technology, business and management. Ross University offers doctoral degree programs through its schools of Medicine and Veterinary Medicine. Chamberlain College of Nursing offers associate and bachelor’s degree programs in nursing. Becker Professional Review, which includes Becker CPA Review and Stalla Review, provides professional education and exam review for accounting and finance professionals. For more information, visit http://www.devryinc.com.