Mount Mercy, St. Ambrose University celebrate completion of first phase of merger

In a symbolic gesture celebrating the first phase of their strategic combination, Mount Mercy and St. Ambrose University held a public signing Friday, June 27 at the Sisters of Mercy University Center on Mount Mercy’s campus.

The celebration comes 10 months after the universities first announced their intent to merge, with Davenport-based St. Ambrose acting as the “parent company” of Mount Mercy once the final of two steps is completed.

“This is not simply one plus one equaling two. This is one plus one equaling four or 10, or something even greater as new synergies emerge and our shared mission and vision deepens,” said St. Ambrose University President Amy Novak, addressing stakeholders, faculty, staff and students assembled for the celebration.

The universities will maintain their focus on students, education and their mission throughout the merging process, Mount Mercy University President Todd Olson said.

“Some of these last couple of years, many of us have persevered, have labored together, and God has labored with us on both our campuses and many points in between, as we craft a new and exciting and sustainable future for Catholic higher education in eastern Iowa and beyond,” he said.

Merger talks began in 2023

The universities announced their intent to merge Aug. 1, 2024, with discussions exploring the possibility occurring a year prior.

Higher education, particularly smaller, private institutions, have faced significant challenges following the COVID-19 pandemic in 2020. Declining donations, enrollment numbers and inflation forced the 180-year-old Iowa Wesleyan University to close in 2023.

According to a 2024 CBJ article, during that time, Mr. Olson and Ms. Novak met with presidents of other Catholic institutions to discuss the complexity and challenges facing their own universities, eventually landing on the idea to collaborate together.

“That was really the starting point for us, recognizing both of us love, value, and want to do everything we could to move our university forward,” said Mr. Olson, in the article. “And we saw the complex times we were in and saw a particular opportunity here. The conversation really went on from there first, just with the two of us imagining some paths forward, then bringing in some leaders from our boards, and as time went on, broadening that circle of conversation.”

St. Ambrose financed the merger through an asset transfer, making strategic investments in the services and support in the “back office operations” in addition to supporting initiatives going forward, Ms. Novak said.

“Essentially, as this combination came together, the employees became part of the St. Ambrose University community,” she said, during the question and comment period of the press conference. “St. Ambrose is funding salaries and all of the benefits, but continuing to maintain and support the Mount Mercy University campus.”

As part of the strategic combination agreement, Mount Mercy and the Sisters of Mercy will retain a representation on St. Ambrose’s board of trustees.

Mount Mercy will continue to operate as a distinct entity until the Department of Education approves the second and final stage of the process, at which point Mount Mercy will be known as the Mount Mercy Campus of St. Ambrose University. Officials estimate the final phase will be completed by summer 2026.

Projected enrollment numbers ‘strong’

Following remarks, presidents of both universities signed paperwork signifying the completion of phase one, which officially makes St. Ambrose the “corporate owner” of Mount Mercy.

Bishop Dennis Walsh, of the Diocese of Davenport, expressed gratitude toward the Sisters of Mercy for their commitment to education and their focus on the marginalized.

“We have honored the legacy of the Sisters while ensuring that their work will continue and expand through this new chapter,” he said. “As we move forward, we do so inspired by the imagination of the Sisters and the enduring wisdom of Saint Ambrose, whose writings challenge us to serve the common good, to educate with purpose, to build communities rooted in faith and intellect. Together, these two great institutions will form something new, a Catholic University that is stronger, more responsive, more prophetic, and more needed than ever.”

During the question and comment period, an audience member asked about the difference between a merger versus a strategic combination. “Essentially, the combination allows us to bring the assets of both institutions collectively together and to still preserve and be attentive to mission and to the specific nature of mission as it relates to the Sisters of Mercy,” said Ms. Novak, adding “I think it best represents, frankly, the work that we've done and the desire to strengthen both institutions while maintaining attentiveness to charism and mission.”

The universities have approximately 20 integration teams assisting in the combination process, spanning everything from instructional technology to graduate programs, academic affairs, office operations, alumni and philanthropy.

“That integration work continues to happen, (and) we take votes about every two weeks on a variety of things, from the academic calendar to the learning management system to whether or not we're going to approve a particular curriculum,” Ms. Novak said.

St. Ambrose is seeing strong enrollment projections for both undergraduate first year student transfers as well as graduate, Ms. Novak said, and credited Mount Mercy’s new football program for increasing projected enrollment there as well.

“There's renewed confidence that we have a very positive path forward. I believe it's been very helpful in driving enrollment,” Mr. Olson said.

Both universities have also seen strong continued investment by donors, Ms. Novak said.

Asked if the climate of the the current federal administration has caused additional challenges for the universities during the process, Mr. Olson said the universities’ plan seems to have a broad appeal with “folks from a variety of political perspectives. We are both values-based and practice-based on both campuses. We both care about issues of justice and hospitality and formation, and we care about providing pragmatic, well prepared professionals for our workplaces. We value both of those things, we believe we are already providing a set of outcomes and services and people that are well regarded across the political spectrum, and it's certainly our intention to continue doing that.”