Arizona State University may merge with the Thunderbird School of Global Management, Inside Higher Ed reported.

Thunderbird, a freestanding, "well-respected" private business school, has recently signed a letter of intent to become part of Arizona State University after struggling financially in recent years. Both entities agreed on the general terms under which the integration would take place.

Arizona State University is currently working diligently and productively towards a final agreement, school officials announced.

"This merger offers significant advantages to both institutions," Arizona State University President Michael M. Crow said in a statement. "Through the integration of Thunderbird with [Arizona State University], the Thunderbird historic global education vision will be sustained and extended, students at ASU and Thunderbird will have access to more courses and programs, [Arizona State University's]executive education programs can be broadened and expanded, and financial efficiencies will be created."

Under the agreement being discussed, Thunderbird would remain an independent unit of the university, which has a business school. Thunderbird will serve as a complement to the renowned business education programs in Arizona State University's W. P. Carey School of Business.

The W. P. Carey School is one of the highest-ranked and largest business schools in the United States, with more than 11,000 students, and undergraduate business, full-time MBA, part-time MBA and online MBA programs all ranked top 30 by U.S. News & World Report. Its distinguished faculty members include a Nobel Prize winner.

"This is a big moment in Thunderbird's history, and we are excited by the significant opportunity it represents to join with one of the world's most innovative universities," according to Larry Penley, president of Thunderbird. "Both institutions share compatible missions and a strong commitment to global impact, which can energize us both."

Founded in 1946, Thunderbird is the historic leader in global management education, repeatedly ranked at or near the top for international business by U.S. News & World Report, among the The Economist's top three schools for its international alumni network, and third in the world for its customized executive education by the Financial Times.

"We have a great deal of respect for ASU, their recent success and wish to remain optimistic," Will Counts, executive director of the Thunderbird Independent Alumni Association, which led opposition to the plan, said in a statement. "Before we comment on the merits of the ASU-Thunderbird integration we are going to have to see more details about the structure of this transaction. Based on the articles presented thus far, it is even more important to have an independent alumni association going forward."