NOVA LIMA, Brazil - Afya (NASDAQ:AFYA) Limited (NASDAQ:AFYA; B3:A2FY34), a prominent medical education group in Brazil with a market capitalization of $1.39 billion and impressive gross profit margins of 62%, has announced the acquisition of Faculdade Masterclass Ltda. (FUNIC), which will add 60 medical school seats to its operations in Contagem, part of the Belo Horizonte metropolitan area. According to InvestingPro data, the company has demonstrated strong financial health with revenue growth of 16.67% over the last twelve months. The transaction, which involves the purchase of 100% of FUNIC's total share capital through Afya Participações S.A., a wholly-owned subsidiary, is expected to enhance Afya's presence in Minas Gerais, integrating the new entity as its fifth medical school in the state.
The deal, valued at R$ 100 million, stipulates that R$ 60 million will be paid in cash upon closing, with the remaining R$ 40 million to be paid in three annual installments, adjusted by the CDI. The company's strong liquidity position, evidenced by a current ratio of 1.6, suggests it is well-positioned to handle the acquisition costs. Additionally, Afya may incur an extra cost of R$ 1 million per seat for up to 60 additional seats if they are approved by the Ministry of Education within 36 months from the closing date.
Afya anticipates an enterprise value to EBITDA (EV/EBITDA) multiple of 3.3x by 2030 after realizing full maturity and synergies, with expected net revenues of R$ 52.4 million, exclusively from its medical education segment. The closure of this acquisition is contingent on meeting standard conditions, including antitrust regulatory approval.
The announcement comes as Afya continues to solidify its position as a leading provider of medical education and practice solutions in Brazil. The company offers a comprehensive ecosystem for medical professionals, encompassing the entire physician lifecycle from medical school entry to continuing medical education and practice enhancement.
This strategic expansion is poised to serve as an academic hub for Afya's network of medical campuses in Minas Gerais, furthering the company's mission to empower medical students and professionals throughout their careers. The information reported is based on a press release statement. InvestingPro subscribers have access to 10 additional exclusive ProTips and comprehensive financial metrics that provide deeper insights into Afya's growth potential and market position.
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