- EDU Holdings (EDU) is set to acquire Care Plus Training, which trades as Nurse Training Australia (NTA), for $6 million
- Founded in 2013, NTA is a privately-owned registered training organisation that offers certificate and diploma courses in health and community fields of study
- The acquisition consists of an initial $4.5 million upfront cash payment for a 75 per cent stake with a further $1.5 million payment payable in 12 months for the remaining 25 per cent
- To fund the acquisition, EDU will be undertaking a share placement to raise $6 million through the issue of more than 46.15 million shares to investors and company directors
- EDU has ended the day 7.14 per cent in the green to close at 15 cents
EDU Holdings (EDU) is set to acquire Care Plus Training, which trades as Nurse Training Australia (NTA), for $6 million.
Founded in 2013, NTA is a privately-owned registered training organisation and Commonwealth register of institutions and courses for overseas students provider.
It offers certificate and diploma courses in health and community services fields in areas with skill shortages such as nursing.
In 2021, it tabled $4.1 million in revenue and $1.3 million in earnings before interest, tax, depreciation and amortisation.
The $6 million acquisition price consists of a $4.5 million upfront cash payment for a 75 per cent stake with a further $1.5 million payment payable in 12 months to acquire the remaining 25 per cent.
This initial payment is subject to net debt and working capital adjustments while the $1.5 million payment is not subject to any conditions.
Subject to satisfaction or the waiver of a number of conditions, the acquisition is expected to be completed in Q3 2022.
This acquisition broadens EDU’s entry into the nurse training market as well as its course offering.
“We have been planning a strategic entry into nurse training for some time now and see the acquisition of NTA as a highly attractive opportunity to expand EDU’s offering,” CEO Adam Davis commented.
“There is strong alignment between the businesses, both sharing a commitment to deliver high-quality training and employment outcomes.”
“The acquisition is also a catalyst for the group to develop a higher education nursing program, in line with our strategy of creating pathways from vocational to higher education.”
To fund the acquisition, EDU will be undertaking a share placement to raise $6 million through the issue of more than 46.15 million shares to institutional, professional and sophisticated investors, as well as company directors.
Shares will be priced at 13 cents which represents a 7.1 per cent discount to EDU’s closing price of 14 cents on May 30.
EDU will also be undertaking a share purchase plan (SPP) to raise a further $500,000.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares which will be priced the same as the placement.
Furthermore, Mulpha has been welcomed as a strategic investor with its CEO Greg Shaw joining EDU as a Non-Executive Director.
Mr Shaw has more than 25 years of experience in leisure and hospitality businesses with operations across Australia, New Zealand and the United States.
Prior to joining Mulpha in 2016, he was CEO of Ardent Leisure (ALG), helping the company grow from a $70 million business to a $1.2 billion business.
EDU was up 7.14 per cent at market close with shares ending the day off at 15 cents.