Sky Schaudt/KJZZ

The University of Phoenix's main campus off Interstate 10 in Phoenix.

A deal has been approved for the University of Idaho to purchase the University of Phoenix — a for-profit university that once had an enrollment of nearly 500,000 students.

Idaho’s education board approved the $550 million deal this week, which would create a not-for-profit entity referred to as NewU that would acquire the Phoenix-based school.

University of Idaho President Scott Green acknowledged how past controversies reshaped the University of Phoenix.

“We share with the University of Phoenix a vision for student success. The University of Phoenix has worked for the last several years under new leadership to repair its reputation, refocus its efforts and rebuild itself around the same mission as our University of Idaho," he said.

The transaction requires regulatory approvals that will take several months to complete.