Nelnet (NYSE: NNI), a leading education planning and financing company, announced on May 28th that it has sold EDULINX Canada Corporation, Canada's leading student loan service provider and subsidiary of the company, to Resolve, a business outsourcing firm based in Canada.
The total cash consideration to be paid to Nelnet after transaction related expenses will be between C$20.65 million and C$24.35 million, subject to adjustments and post-closing performance factors.
On December 22, 2006, the company announced that the Government of Canada decided to award a competitive contract to provide financial and related administrative services in support of the Canada and Integrated Student Loans Program (CSLP) upon the expiration of the current EDULINX contract for such services to Resolve.
"EDULINX has been a strong business for Nelnet and, since the CSLP contract decision, we have actively sought solutions that would be in the best long-term interest for EDULINX customers and associates, as well as for Nelnet," said Mike Dunlap, Chairman and Chief Executive Officer. "Through the transaction with Resolve, we have found just that - a win-win for everyone involved, especially for EDULINX customers and associates."
For 28 years, Nelnet has been helping the education-seeking family plan for their education, pay for their education and prepare for their careers. The company has invested hundreds of millions of dollars in products, services and technology improvements for students and the educational institutions they attend. These services include live counseling to help families through all aspects of the financial aid process, benefits for borrowers, including tens of millions of dollars in borrower loan fee discounts and other benefits, and Nelnet sponsored scholarships. Nelnet serves students in 50 states, employs approximately 4,000 associates and has $25 billion in net student loan assets. -Nelnet
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