Universal Technical Institute (UTI) has entered into a definitive agreement to acquire MIAT College of Technology from HCP & Company, its owner since August 2014.
Terms of the transaction have been disclosed in UTI's Form 8-K and completion of the acquisition will occur pending customary closing conditions and regulatory approvals. The boards of directors of both companies have unanimously approved the agreement.
Like UTI, MIAT is focused on serving students seeking fast-tracked, high-value education that leads to rewarding jobs and careers and to helping employers meet their demand for talent trained with the high-tech and evolving skills required in today’s workforce.
MIAT was founded in 1969 and currently serves approximately 1,200 students through its campuses in Canton, Mich., and Houston. The company offers vocational and technical certificates as well as associates degrees in fields with growing demand for skilled technical workers.
MIAT's preliminary revenue and adjusted EBITDA for calendar 2020 were approximately $25 million and $3.5 million, respectively, with year-over-year revenue growth in excess of 20 percent in both 2020 and 2019. MIAT is accredited by the Accrediting Commission of Career Schools and Colleges, according to an announcement.
The acquisition will enable UTI to further expand its program offerings into growing industry sectors and rapidly expanding fields likely to be bolstered by technological innovation and the country's focus on sustainable energy. Additionally, this will allow UTI to offer MIAT programs at UTI campuses and extend UTI's presence and programs into the Detroit market where MIAT has been for more than 50 years.
"We are excited about the upcoming addition of MIAT College of Technology and to advance our strategy to serve more students, particularly in fields where trained technicians are in such strong and increasing demand,” says UTI CEO Jerome Grant.
“We believe UTI’s existing financial strength, the acquisition of MIAT and the program expansion and diversification synergies it will enable, along with our previously announced planned new campus investments, will position UTI for solid double-digit revenue growth and continued margin expansion over the next several years,” Grant says.