Purdue to acquire Kaplan University, increase access for millions

Tuesday, May 2, 2017 8:36 am CDT


West Lafayette

WEST LAFAYETTE, Ind. — Purdue University announced Thursday (April 27) the creation
of a new public university that will further expand access to higher education. The initiative is
meant to address two striking new realities: the need for postsecondary education for working
adults and others unsuited to traditional campus study, and the explosive growth of online
technologies as a means of delivering education to students of all types.

“Nearly 150 years ago, Purdue proudly accepted the land-grant mission to expand higher
education beyond the wealthy and the elites of society,” President Mitch Daniels said. “We cannot honor our land-grant mission in the 21st century without reaching out to the 36 million working adults, 750,000 of them in our state, who started but did not complete a college degree, and to the 56 million Americans with no college credit at all.

“None of us knows how fast or in what direction online higher education will evolve, but we
know its role will grow, and we intend that Purdue be positioned to be a leader as that happens.
A careful analysis made it clear that we are very ill-equipped to build the necessary capabilities
ourselves, and that the smart course would be to acquire them if we could. We were able to find
exactly what we were looking for. Today’s agreement moves us from a standing start to a
leading position.”

To launch the new university, Purdue will acquire Kaplan University and its institutional
operations and assets, including its 15 campuses and learning centers, 32,000 students, 3,000
employees, and decades of experience in distance education. All existing Kaplan University
students and faculty will transition to the new university, which will use the Purdue name in
some fashion not yet identified.

“Kaplan and Purdue share the critical mission of expanding access to education,” said Donald E.
Graham, chairman of Graham Holdings Company (NYSE: GHC), the parent company of Kaplan
Inc. and Kaplan University. “Purdue takes its land-grant mission very seriously, and I’m deeply
impressed by this great university’s commitment to meeting the needs of non-traditional

The new university will be distinct from others in the Purdue system, relying only on tuition and
fundraising to cover operating expenses. No state appropriations will be utilized. It will operate
primarily online, but has 15 locations across the United States, including an existing facility in
Indianapolis, with potential for growth throughout the state. Indiana resident students will
receive a yet-to-be determined tuition discount.

Former U.S. Secretary of Education Arne Duncan said, “I’ve always had great respect for Gov.
Daniels, and I’m excited by this opportunity for a world-class university to expand its reach and
help educate adult learners by acquiring a strong for-profit college. This is a first, and if
successful, could help create a new model for what it means to be a land-grant institution.”
Purdue currently serves students on two levels: Through its flagship campus in West Lafayette
and at two regional campuses. The new entity will become a third level in the Purdue system,
and will operate almost exclusively online. Betty Vandenbosch, Kaplan University’s current
president, will become chancellor of the new university. A subsidiary of Kaplan Inc. will provide
various non-academic services through a long-term transition and operations support agreement
covering areas such as technological support, human resources, facilities management and other
administrative functions.

“Purdue and Kaplan share the ambition of enabling individuals of all backgrounds to benefit
from a high quality education,” said Andy Rosen, Kaplan’s chairman and chief executive officer.
“Purdue’s tradition of excellence makes it an ideal party to build upon the progress and
innovation that Kaplan University has achieved over the past two decades. We’re proud to pass
the baton to this esteemed university."

The new university will formally begin operations upon approval from the U.S. Department of
Education and the Higher Learning Commission. Purdue plans to take immediate steps to
commence those approval processes. Both Purdue and Kaplan universities are accredited by the

More information, including an FAQ, is available at www.PurdueNewU.org.

Purdue University, a top public research institution, offers higher education at its highest
proven value. Committed to affordability, the university has frozen tuition and most fees at 2012-
13 levels. Committed to student success, Purdue is changing the student experience with greater
focus on faculty-student interaction and creative use of technology. Committed to pursuing
scientific discoveries and engineered solutions, Purdue has streamlined pathways for faculty and
student innovators who have a vision for moving the world forward.

Kaplan University is accredited by The Higher Learning Commission, and serves
approximately 32,000 online and campus-based students. The University has 15 campuses and
learning centers in Iowa, Indiana, Nebraska, Maryland, Maine, Missouri and Wisconsin. The
university strives to help adult students by providing practical, student-centered education that
prepares them for careers in some of the fastest growing industries. KU has been a leading
innovator in higher education for many years, including its pioneering role in delivering online
degree programs, its long-time commitment to competency based education linking mastery of
discipline specific and professional competencies, and through its Research Pipeline designed to
improve student learning and persistence by testing experimental interventions against empirical
evidence. KU’s Concord Law School offered the first fully online law degree.

Kaplan, Inc. serves over 1 million students globally each year through its array of higher
education, test preparation, professional education, English-language training, and university
preparation, and offerings to individuals, institutions, and businesses. Across its nearly 80-year
history, first as small test-prep pioneer and then an early online education leader and now a
global education provider, Kaplan has been recognized for expanding educational access and
using technology and learning science innovations to continually improve outcomes for its
students and partners. Kaplan has operations in over 30 countries, employs more than 15,000
full- and part-time professionals, and maintains relationships and partnerships with more than
1,000 school districts, colleges, and universities, and over 2,600 corporations and businesses.
Kaplan is a subsidiary of Graham Holdings Company (NYSE: GHC) and its largest division. For
more information, please visit www.kaplan.com


Kaplan Higher and Professional Education
Amy Hawkinson, 954-515-3603
773-301-6437 (cell)
Kaplan Higher and Professional Education
Stephen White, 954-515-4124