Benzinga | Oct 22, 2020 09:00AM EDT

Afya Limited Enters Purchase Agreement For Acquisition Of UNIFIPMoc And Fip Guanambi For R$360M



NOVA LIMA, Brazil, Oct. 22, 2020 (GLOBE NEWSWIRE) -- Afya Limited, or Afya (NASDAQ:AFYA) today announced it entered into a purchase agreement for the acquisition, through its wholly-owned subsidiary Afya Participa??es S.A., of 100% of the total share capital of Sociedade Padr?o de Educa??o Superior Ltda ("UNIFIPMoc and Fip Guanambi").

The aggregate purchase price is R$360.0 million, adjusted by the Net Debt at the closing date, of which 100% is payable in cash on the transaction closing date.

UNIFIPMoc and Fip Guanambi are a post-secondary education institution with government authorization to offer on-campus, undergraduate courses in medicine in the states of Minas Gerais and Bahia. The expected Net Revenue for 2020 is R$ 109 million of which 63% comes from the medicine course. The 2024 projected Net Revenue for UNIFIPMoc and Fip Guanambi is R$ 121 million at full maturity, with medical courses representing 73% of this amount, an expected EV/EBITDA of 5.1x at maturity and post synergies.

The acquisition will contribute 160 medical school seats to Afya, increasing Afya's total medical school seats to 2,303. There are 40 additional seats still pending approval which, if approved by the Ministry of Education, will result in a potential additional payment of up to R$50 million.