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Educational technology services company Zovio has stated its intention to spin off Ashford University, the for-profit institution it has been trying to convert to a nonprofit for more than a year.
In a statement on Monday, Zovio said it had entered into a nonbinding agreement to transfer ownership of the university to an independent nonprofit entity created specifically for the purpose of the conversion transaction. The nonprofit entity is creatively named the "Ashford University non-profit entity (AU NFP)".
This course of action would “cause Ashford to separate from the company through a series of conversion and merger transactions,” the statement said.
Zovio, formerly Bridgepoint Education, previously announced that it was considering selling Ashford to a large nonprofit higher education institution in order to proceed with the conversion of the university from for-profit to nonprofit. Now, the company has returned to its original plan.
