S&P 600 Component
|Headquarters||Herndon, Virginia, USA|
Karl McDonnell, CEO|
Robert S. Silberman, Executive Chairman
Kevin Gilligan, Vice Chairman
Number of employees
Strategic Education Inc. is an education services holding company. The company owns for-profit, online Capella University and Strayer University, as well as coding schools DevMountain, Generation Code, Hackbright Academy, and The New York Code + Design Academy.
In August 2018, Capella Education Company merged with Strayer Education, Inc., in a $1.9 billion deal. The two publicly-traded parent companies combined corporate functions but the universities they operate remain separate institutions. The new parent company is called Strategic Education, Inc.
Strayer shareholders control 52% of Strategic Education, while Capella shareholders control the other 48%.
Strayer University and Capella University collectively serve about 80,000 students.
The Capella Education Company was founded in 1991 by Stephen Shank, former CEO of Tonka Corporation. In 1993, it opened The Graduate School of America (TGSA). In 1999, the company and university were renamed to Capella Education Company and University. In 2003, the company was named to Inc. magazine's Inc. 500 Hall of Fame after being named one of America's 500 Fastest-Growing Private Companies for the fifth year in a row. Prior to going public the company raised more than $67 million from private investors, including Maveron.
On January 8, 2005, Capella Education Co. said it had two new investors following deals totaling more than $60 million. The company announced its intentions to go public with an initial public offering in April 2005. It reported 2005 earnings of $10.2 million on sales of nearly $150 million. On November 9, 2006, it completed a public offering that raised $80 million.
In March 2008, Capella Education Co., longtime occupant the 225 South Sixth skyscraper in downtown Minneapolis, signed a new lease that changed the name of the building to Capella Tower. The expanded facility housed all of the company's 1,150 downtown Minneapolis employees Capella; as the online school does not have classrooms, the space houses administrative staff and faculty. The name change took place on March 2009.
In July 2011, Capella Education Company acquired the UK based Resource Development International Ltd (RDI), gaining them access to the fast-growing international higher education market, with a significant presence in the UK and Commonwealth countries. In August 2015, RDI received approval in the UK to become the newly formed Arden University.