EAB Sold, Will Become Stand-Alone Company

The Advisory Board on Tuesday said it would sell EAB, the consulting firm's education arm, to a private equity firm for $1.55 billion. The Washington-based Advisory Board is selling the rest of its operation, which is largely focused on health-care technology, for $1.3 billion.

The big price tag is sure to raise eyebrows in higher education, an area in which EAB has expanded its consulting and research business in recent years. The company said it has worked with 1,200 institutions to help improve student outcomes and meet enrollment targets, among other offerings.