Lackawanna School and Peirce School plan to mix underneath the Lackawanna identify, the 2 Pennsylvania establishments introduced Wednesday.
Earlier than finalizing, the mixture would require regulatory and accreditor approval, which the universities count on to come back by June 2025. Each faculties are accredited by the Center States Fee on Larger Training.
In a press launch, the universities mentioned the merger would “solidify Lackawanna’s place as the most important open enrollment personal, nonprofit establishment” in Pennsylvania.
The Philadelphia-based Peirce caters largely to grownup learners, providing affiliate, bachelor’s and grasp’s diploma packages. Lackawanna, whose principal campus is in Scranton, Pa., gives affiliate and bachelor’s levels together with persevering with schooling certificates.
In a joint interview, the establishments’ respective leaders framed the consolidation as a approach to make each faculties stronger by combining sources and specialties.
“It is a proactive step, a strategic transfer for each of us,” Jill Murray, Lackawanna’s president, informed Larger Ed Dive. “Larger ed isn’t a simple place proper now for many individuals, and particularly in Pennsylvania. That is not true of us. We’re each in wholesome form.”
Programming performed a significant function within the resolution to mix, officers mentioned.
Mary Ellen Caro, president and CEO of Peirce, famous that her school brings graduate packages to the combo, whereas Lackawanna has many utilized and medical packages that may complement Peirce’s choices within the Philadelphia market.
“We each had fascinating massive partnerships with firms that may very well be expanded,” Caro added.
What’s subsequent for the universities
The Philadelphia-based Peirce will add a brand new marketplace for Lackawanna. Each faculties concentrate on their native pupil bases and job market wants and can proceed to take action after they mix, their presidents mentioned.
“We perceive the necessity for serving the populations through which we reside,” Murray mentioned. “We’re not seeking to essentially recruit college students from Connecticut. We’re seeking to impression the workforce within the areas through which we serve, and that, for a lot of faculties, is obscure.”
Beneath the settlement, Lackawanna is ready to soak up Peirce’s income and steadiness sheet, officers informed Larger Ed Dive.
The deal will convey some vital modifications to the greater than 150-year-old Peirce. As soon as it’s accomplished, Peirce’s board will successfully be dissolved. Murray mentioned Lackawanna plans so as to add some members from Peirce’s board onto its personal, although particulars haven’t been finalized.
Caro may even step down as soon as the establishments mix.
“I’ll joyfully hand this over to Jill to run, however be there as considered one of their strongest cheerleaders,” mentioned Caro, who turned president and CEO in 2018 and is the primary girl to carry the highest management function at Peirce.
Lackawanna, which is 130 years outdated, is the bigger of the 2 faculties in the present day, with a headcount of 1,868 college students in fall 2022, which was up greater than 16% from 5 years prior. Peirce has seen enrollment plunge over that point by 42% to 856 college students.
However each leaders maintained the universities had been in comparatively good condition, although Peirce has posted finances deficits in recent times. As an indication of Peirce’s well being, Murray pointed to the school’s steadiness sheet, which as of fiscal 2023 listed greater than $22 million in belongings accessible to spend and no long-term debt exterior of a property mortgage.
Combining supplies alternatives to save cash, equivalent to on software program instruments. Requested about potential workers reductions, Murray mentioned Lackawanna is concentrated on areas of attainable development with the deal.
“I believe there’s going to be some pure attrition over the course of the subsequent 12 months or so, however we’re hopeful that we’re going to have the ability to preserve as a lot expertise and workers as attainable,” she added.
‘It’s the connection that issues’
Lackawanna plans to maintain Peirce’s identification and legacy alive by making it a college within Lackawanna, in accordance with Murray. Lackawanna additionally plans to call a web-based school after Peirce, she added.
With extra faculties coming underneath monetary stress — amid demographic shifts, income stress and rising prices — some anticipate an increase in mergers as a possible resolution. However timing, communication and collaboration are crucial to success, consultants say.
Murray and Caro started speaking and collaborating earlier than a merger was even on the desk. Their collaboration began shortly after the upper ed world started reopening to in-person conferences within the pandemic period, when the 2 school presidents occurred to take a seat subsequent to one another at a discussion board.
“We had been sharing our respective tales concerning the market, about our challenges, experiences, alternatives,” Caro mentioned. “It was clear from the start that we had nice alignment between our missions, being open enrollment establishments on the undergraduate stage and having complementary portfolios.”
Their groups first started working collectively on articulation agreements in order that Lackawanna graduates might transfer on to grasp’s levels at Peirce.
“It’s the connection that issues,” Murray mentioned. “We mentioned, ‘Oh, wow, this might actually be one thing particular.’ We get alongside, we clicked, our groups labored, and we thought, ‘What if?’”
