What you need to know about the new Commonwealth Charter Academy
Commonwealth charter schools are a hot commodity these days.
The company has been building its new charter school empire on its model of creating charter schools through partnerships with the state and private companies.
Now, with the latest charter school acquisition, it has gone a step further, taking a stake in the private charter school company called Relias Academy.
The deal, first reported by Recode, puts Commonwealth Charter Schools (CCC) in a very big deal.
It gives CCC a stake of more than a million shares in Relias, with a value of $3.6 billion.
CCC already has stakes in more than two dozen charter schools across the country, including the largest publicly traded company in the U.S., Charter Schools America.
The $3 billion represents a 30 percent stake in Relios parent company, Relias Holdings.
The other $3 million in shares will go toward CCC’s other businesses.CCC says that the deal is a direct result of Relias success.
In 2018, Relios had a $2.6 million surplus, a position it hasn’t been able to match since it launched in 2015, according to CCC.
CCA plans to spend $4.4 billion on Relios over the next three years.
Relios is also a strong performer for its investors, with nearly $2 billion in cash and a market cap of more $12.5 billion.
But CCA’s ownership stakes in Relies don’t mean that Relias is going to be run like CCA runs other companies.
Relias operates independently from CCA and its subsidiaries, and CCA also operates the Relias charter schools, which CCA says don’t meet the same standards that CCA is looking for.
And CCA isn’t going to have a say in how those schools are run.CCA also doesn’t own a stake, but it does own a significant stake in CCA parent company Charter Schools USA, which is also developing a charter school in North Carolina.
Charter Schools US is building a charter academy in North Dakota, which will be overseen by Relias parent company Relias Enterprises.
CSA also owns shares in a number of Relios schools.
Relies parent company has about 1,500 employees, according the company website.
The Relias deal will help CCA expand its charter school portfolio, as well as provide the company with new charter schools.
In 2019, Relays new schools are set to open in Pennsylvania, Florida, Georgia, North Carolina, Virginia, Ohio, and New York.
The Relias schools are currently being developed in Michigan, Illinois, Pennsylvania, South Carolina, Wisconsin, Florida and New Jersey.
“Relias will be able to bring the same level of expertise, commitment, and passion that CCC brings to our schools and will enable us to continue to grow Relias,” CCA CEO Mark Cohen said in a statement.
“Relias has demonstrated exceptional management skills, proven track records of performance and exceptional financial and operational performance, and we look forward to partnering with Relias to create a strong, competitive and scalable model that can benefit our students, our communities, and the world.”
Relias’ board of directors includes two former CCA board members, including its chairman, Peter G. Zollner.
Relia is run by the same board that manages CCA.
Relays board also includes former CAC chairman and CEO John M. DeMoro.