American Public Education, Inc. to Acquire Rasmussen University to Help Address Nation’s Growing Healthcare Needs

CHARLES TOWN, WV (October 28, 2020) – American Public Education, Inc. (Nasdaq: APEI) (“APEI”) – parent company of online learning provider American Public University System (“APUS”) and on-ground, pre-licensure Hondros College of Nursing (“Hondros”) – announced that it has entered into a definitive agreement to acquire Rasmussen University (“Rasmussen”), a nursing- and health sciences-focused institution serving over 18,000 students at its 24 campuses across six states and online with a full complement of degree programs.

For more financial details on the transaction, visit: https://www.apei.com/news/press-release-details/2020/American-Public-Education-Inc.-APEI-Announces-Transformational-Deal-to-Acquire-Rasmussen-University-the-Largest-Educator-of-ADN-Nurses/default.aspx.

APEI’s acquisition addresses an urgent priority to create thousands of new nurses. An aging population and other healthcare demands are straining the U.S. healthcare system, while at the same time, hundreds of thousands of nurses are predicted to reach retirement age over the next several years. Registered Nursing alone is expected to be one of the top occupations for job growth over the next nine years, with about 175,900 openings for registered nurses projected each year, on average, according to the Bureau of Labor Statistics’ employment projections from 2019-2029.

Angela Selden, chief executive officer of APEI, stated, “We are very enthusiastic about the acquisition of Rasmussen, as collectively, Rasmussen and Hondros will be a nursing education powerhouse, serving over 10,000 nursing students. The core mission of APEI and its institutions is to provide an educational platform where adult learners of all backgrounds can obtain the skills they need to Make their Purpose Possible. This acquisition amplifies our brand promise to provide our students with Higher Education Return on Investment or ‘HEROI^TM’. APEI is pleased to add another #1 market position – pre-licensure nursing (ADN/RN and PN/LPN) – to our current #1 market position with APUS in serving military and veteran students¹.”

Rasmussen University is regionally accredited by the Higher Learning Commission (HLC) and offers a full complement of degree programs in Nursing, Health Sciences, Business, Technology, Design, Education and Justice Studies. Rasmussen offers both traditional and competency-based programs online and through its 24 on-ground campuses in six states. With over 8,200 nursing students, Rasmussen is one of the largest U.S. providers of pre-licensure nursing programs, which have grown at a 16% five-year compound annual growth rate. Rasmussen is one of the original 30 members of the Competency-Based Education Network (C-BEN), which prioritizes learning over time spent in classrooms and gives students greater control in balancing school and life. Today, Rasmussen’s Flex Choice^R offers 30 competency-based degree programs to more than 3,000 learners – the 5^th largest CBE program in the U.S.

¹ Based on FY 2019 DoD tuition assistance data and Department of Veterans Affairs data, as reported by Military Times, 2020.

“There is tremendous alignment between both our cultures, most notably through our emphasis on delivering high-quality student learning that is deeply connected to the employment market – in nursing, health sciences, and all of our online programs,” said Rasmussen Interim President Dr. Ann Leja. “As a pioneer in higher education with a 120-year history, we pride ourselves on providing access to high-quality, career-focused education for underserved populations. We intend to continue innovating to achieve that mission.”

Rasmussen will continue to operate as a separately accredited and uniquely branded institution as it joins APEI’s growing family of higher education institutions.

About Rasmussen University

Rasmussen University is accredited by the Higher Learning Commission and is dedicated to meeting the evolving needs of diverse communities through career-focused, flexible, accessible and affordable educational programs. A pioneer in career-focused education since 1900, Rasmussen leads advancements in innovations such as employer-led and expert designed curriculum and comprehensive student support services to help working adults advance their educations. Additionally, Rasmussen University is a national leader in competency-based education. Rasmussen University offers undergraduate and graduate programs online and across its 24 Midwest and Florida campuses. Rasmussen encourages its students, faculty and staff to strive for academic excellence, community enrichment and service to the public good.

About American Public Education

American Public Education, Inc. (Nasdaq: APEI) is a leading provider of higher learning dedicated to preparing students all over the world for excellence in service, leadership and achievement. APEI offers respected, innovative and affordable academic programs and services to students, universities and partner organizations through wholly owned subsidiaries: American Public University System and National Education Seminars Inc., which we refer to in this press release as Hondros College of Nursing. Together, these institutions serve more than 88,000 adult learners worldwide and offer more than 220 degree and certificate programs in fields ranging from homeland security, military studies, intelligence, and criminal justice to technology, business administration, public health, nursing and liberal arts.

Forward Looking Statements

Statements made in this press release regarding APEI or its subsidiaries that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about APEI and the industry. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “seek,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “should,” “will” and “would.” These forward-looking statements include, without limitation, statements regarding benefits of the acquisition of Rasmussen University, the timing of the closing of the transaction, expected growth, expected registration and enrollments, expected revenues, earnings and expenses, expected financial results for Rasmussen University, the ability to deliver a return on learners’ educational investment, and plans with respect to recent, current and future initiatives.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, among others, risks related to: the satisfaction of closing conditions, including the failure or delay in obtaining required regulatory and accreditor approvals; APEI’s ability to obtain financing to fund the transaction; the significant transaction and integration costs APEI has incurred and expects to incur in connection with the acquisition; integration of Rasmussen’s business and APEI’s ability to realize the expected benefits of the acquisition ; that Rasmussen may have liabilities that are not known to APEI; other events that could impact the transaction and its closing; APEI’s dependence on the effectiveness of its ability to attract students who persist in its institutions’ programs; impacts of the COVID-19 pandemic; APEI’s ability to effectively market its institutions’ programs; adverse effects of changes APEI makes to improve the student experience and enhance the ability to identify and enroll students who are likely to succeed; APEI’s ability to maintain strong relationships with the military and maintain enrollments from military students; APEI’s ability to comply with regulatory and accrediting agency requirements and to maintain institutional accreditation; APEI’s reliance on Department of Defense tuition assistance, Title IV programs, and other sources of financial aid; APEI’s dependence on its technology infrastructure; strong competition in the postsecondary education market and from non-traditional offerings; and the various risks described in the “Risk Factors” section and elsewhere in APEI’s Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Report on Form 10-Q for the period ended June 30, 2020, and other filings with the SEC. You should not place undue reliance on any forward-looking statements. APEI undertakes no obligation to update publicly any forward-looking statements for any reason, unless required by law, even if new information becomes available or other events occur in the future.