15/12/2015 - 10:45

Navitas drops US partnership

15/12/2015 - 10:45

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Education provider Navitas will end its affiliation with Western Kentucky University and has flagged the closure of several of its underperforming SAE colleges, in an effort to cut back on costs.

Navitas drops US partnership
Navitas chief executive Rod Jones is disappointed to end the partnership with WKU.

Education provider Navitas will end its affiliation with Western Kentucky University and has flagged the closure of several of its underperforming SAE colleges, in an effort to cut back on costs.

After a five-year partnership with WKU, the Perth-based company will be transitioning about 100 current students through to WKU programs over the next few weeks and will wrap-up the affiliation by mid-January.

In a statement, Navitas said the closures followed an operations review, which had identified areas of the business that were underperforming or had limited prospects for long-term success.

“The objective is to reduce costs and to focus on management time on value-creating businesses,” it said.

Navitas also reviewed its SAE division, which provides creative media education, and has resolved to close SAE Singapore by October next year, and may either divest or close up to three other SAE campuses in the coming 18 months, which are operating in highly unfavourable or competitive markets.

Navitas has also recently completed its disposal of its interest in China-based student recruitment business, EduGlobal,” the company said.

“The closures are not expected to have any earnings impact for Navitas.”

A spokesperson for Navitas confirmed that no SAE colleges in Australia would be affected.

Navitas chief executive Rod Jones said it was disappointing to end the partnership with WKU after so much investment on both sides.

“The learnings we gained from this experience have helped to solidify the direction Navitas wishes to move forward within the US over the next 10 years,” Mr Jones said.

“Expansion in the US is a core growth opportunity for us and we will continue to focus on building collaborative university partnerships that deliver exceptional academic outcomes and outstanding student experiences while also generating much-needed revenue for reinvestment back into our partner institutions.” 

Navitas shares were 3.4 per cent lower to $4.30 each at 10:45am.

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