The terms of this deal are interesting. For a single dollar, Purdue assumes control. Kaplan absorbs all the expenses for the first five years. Why?

Kaplan's enrollments had held mostly steady over the past few years but the national picture was clear: the traditional institutions were increasingly stealing market share in on-line education. Rather than face the same, Kaplan has guaranteed a royalty stream into the future and wrapped itself inside Purdue's more reputable brand. If Purdue can realize the kind of growth seen at SNHU, then both sides will come out better for the deal.