The online program management market experienced another significant shift on Tuesday with the announcement of Academic Partnerships’ $150 million deal to acquire Wiley’s online education business. This acquisition is expected to close in early 2024 and marks a strategic move in the rapidly evolving OPM space.
Academic Partnerships CEO, Fernando Bleichmar, emphasized the growth potential of bringing together two reputable companies to create best-in-class capabilities that can better support students and partners. The base purchase price for the deal is $110 million, with an additional $40 million in potential incentives based on the company’s performance.
Wiley’s interim CEO, Matthew Kissner, highlighted the move as a step towards a simpler business model. Wiley entered the OPM space in 2012 with the acquisition of Deltek, followed by Learning House in 2018, which positioned the company as one of the largest OPMs at the time with 60 university partners and over 700 online programs.
The merger of Wiley University Services and Academic Partnerships will expand access to quality, career-connected education programs for students at public and nonprofit institutions globally. Once the deal is finalized, the combined companies will serve over 125 higher education institutions across 40 states, with a focus on regional universities.
The OPM market has been undergoing significant changes in recent years. Pearson, a former market leader, exited the online education space in March, signaling a shift in the industry. The latest acquisition between Academic Partnerships and Wiley reflects a changing landscape in the OPM space, with a focus on growth and innovation.
The regulatory environment also plays a role in shaping the OPM market. The U.S. Department of Education is reviewing its guidance on revenue-sharing arrangements, which could impact how OPMs operate in the future. This uncertainty may have influenced Wiley’s decision to pursue the acquisition with Academic Partnerships.
Despite the evolving landscape, the demand for OPM services remains strong as universities seek support in delivering online programs. The relationships between colleges and OPMs are also evolving, with universities now having more leverage in negotiations and shorter contract durations.
Looking ahead, industry experts anticipate further consolidation in the OPM market as fewer players remain. While some institutions may opt to develop online programs internally, many regional universities will continue to rely on OPMs for support in delivering affordable, workforce-focused programs.
Overall, the Academic Partnerships-Wiley acquisition represents a significant development in the OPM market, highlighting the ongoing changes and opportunities in online education. As the industry continues to evolve, collaboration and innovation will be key drivers of success for both OPMs and higher education institutions.
