Investors Agree To Buy Sallie Mae for $25 Billion
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A group of investors announced plans yesterday to buy Sallie Mae, taking the nation’s largest student lender private in a $25 billion deal that comes as some regulators call for tougher standards and lower federal subsidies for the $85 billion college loan industry. Private-equity firm J.C. Flowers & Co. and three other investors will pay $60 per share for the Reston, Va.-based SLM Corp., commonly referred to as Sallie Mae. The sale price represents a nearly 50% premium for Sallie Mae’s previously sagging stock before takeover rumors emerged late last week. “We think Sallie Mae is a great company and a great business, and appropriate regulation will sort itself out in a way that will make this an attractive transaction for us,” a managing director at J.C. Flowers, John Oros, said.
