October 21, 2019 / 11:05 AM / 25 days ago

UPDATE 3-Brazil's Yduqs buys Adtalem for $467 mln -securities filing

 (Adds Adtalem's comments, share performance)
    SAO PAULO, Oct 21 (Reuters) - Brazilian education company
Yduqs            has bought Adtalem Global Education Inc's
         assets in Brazil for 1.92 billion reais ($467 million)
as it continues to pursue bolt-on acquisitions, it said in a
securities filing on Monday.
    Adtalem is Brazil's 10th largest private-sector higher
education company, with 102,000 enrolled students, Yduqs,
formerly known as Estacio, said.
    Shares in Yduqs opened up 5.5%, following the acquisition
announcement. 
    The total amount of the acquisition will be paid in cash at
closing of the transaction, which depends on regulatory
approvals and is expected to take place sometime in the first
half of 2020.
    In addition to the enterprise value of 1.92 billion reais,
Yduqs said Adtalem's "pro forma" cash position included in the
deal was 305 million reais.
    "The transaction's value includes a locked-box mechanism in
which all cash generated from Adtalem’s operations between June
30, 2019 and the closing date will remain in the acquired
company," Yduqs also said.
    The acquisition raises the total number of students of the
two entities to 678,000 and their combined 12-month sales to
4.485 billion reais, Yduqs said.
    Adtalem said in a securities filing on Monday it will use
the proceeds of the sale for share repurchases and investments,
including acquisitions.
    Adtalem's move comes as the for-profit education chain is
revising its global strategy, currently focused on three areas:
medical and healthcare, professional education and technology
and business.  
    Reuters first reported that Adtalem had decided to put its
assets in Brazil up for sale and reported last week the
exclusive talks with Yduqs.                          
($1 = 4.1106 reais)

 (Reporting by Ana Mano and Carolina Mandl; Editing by Jan
Harvey and Emelia Sithole-Matarise and Nick Zieminski)
  
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