Media: Another deal in the education sector: Bertelsmann grows to record high with mergers
Bertelsmann now expects 23 billion euros in sales and more than four billion euros in profit. "We're on a real roll," says Group CEO Thomas Rabe – and hints at further acquisitions.
Düsseldorf-based media conglomerate Bertelsmann is expanding its educational division through a merger, aiming to double its share of the conglomerate's profits. The company intends to combine its educational arm, the Bertelsmann Education Group, with the Brazilian medical education provider Afya. This partnership, which will be executed through a stock swap, could result in Bertelsmann Education Group's contribution to the conglomerate's profits increasing by more than double its current size.
Thomas Rabe, Bertelsmann's CEO, anticipates the new entity's profit level to range between 700 million and 800 million euros. Afya's business has been growing at a rate of about six percent annually, and the sector is highly profitable, accounting for roughly 40 percent of the margins. The university education market in Brazil is predominantly served by commercial providers, making up 80 percent of the market.
The merger is expected to generate nearly 900,000 students and Bertelsmann will hold 47 percent of the combined company's shares. The new educational enterprise is anticipated to generate a total revenue of 1.6 billion euros and will be listed on Brazil's B3 stock exchange. Currently, Brazil accounts for four percent of Bertelsmann's revenue, but this percentage is projected to grow to around eight percent.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
