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The University of Idaho is buying more time to finalize its planned acquisition of the for-profit online juggernaut University of Phoenix after a May 31 deadline to close the deal quietly passed.
On Friday the Idaho State Board of Education approved an extension to finalize the purchase. The new deadline to close the deal is June 10, 2025. The extra 11 months will give UI “time to incorporate feedback from legislators and other Idaho stakeholders into the transaction and make amendments based on the feedback,” according to board documents.
The new agreement includes nonexclusivity measures. Unlike under the prior deal, the University of Phoenix’s owners, Apollo Global Management, can now shop the institution around to other buyers. But as part of the extension, Apollo Global Management will pay Idaho $5 million to help offset legal and consulting costs. If the deal is not closed by the new deadline, Idaho will receive an additional $5 million, and if Phoenix is sold to another buyer, Idaho will receive $15 million.
The extension comes amid political and legal challenges to the deal. Idaho legislators have raised concerns about the efficacy of the $685 million purchase and the troubled history of Phoenix, and they have questioned whether the State Board of Education had the authority to create a nonprofit to facilitate the purchase. State attorney general Raúl Labrador also sued the board over alleged violations of the open meetings act related to closed-door discussions around the deal. Labrador’s case was heard by the Idaho Supreme Court last month, though it has yet to rule on his lawsuit.
