AcadeMedia strengthen its position through acquisition of Swedish Education Group for SEK 185 million

AcadeMedia has today entered into an agreement to acquire all shares in RE Skolor AB, the ultimate owner of Swedish Education Group AB. The acquisition includes operations in compulsory school, upper secondary school, and higher vocational education. The acquisition complements AcadeMedia’s existing business and strengthen our position in the growing markets of upper secondary school and adult education. The Swedish Education Group AB had a turnover in 2019/20 of approximately SEK 360 million and EBITDA of approximately SEK 35 million.

The transaction has a cash and debt-free value (Enterprise Value) of SEK 185 million. The acquisition is conditional upon the Competition Authority's approval and is expected to be completed at the end of the second quarter of the fiscal year 2020/21.

“We look forward to work together with the staff and management at these units and to continue to develop the organization together. The acquisition is in line with AcadeMedia’s strategy and it strengthens our position as a long-term education provider”, says Marcus Strömberg, CEO of AcadeMedia.

The acquisition in brief

• The purchase price for Swedish Education Group AB amounts to SEK 215 million and the transaction has a cash and debt-free value (Enterprise Value) of SEK 185 million. The acquisition is financed through existing funds.
• The acquisition is conditional upon the Competition Authority's approval and is expected to be completed during the second quarter of the 2020/21 fiscal year.
• The seller is REF IV Luxembourg S.à r.l., an affiliate of The Riverside Company.
• AcadeMedia believe that there is potential to develop and coordinate the business and thereby improve EBIT with approximately SEK 5 million. In addition, Swedish Education Group AB is expected to have a positive development with increasing number of students and improved EBIT during the fiscal year 2020/21.

About Swedish Education Group

Swedish Education Group operate one compulsory school in Stockholm, one compulsory and upper secondary school in Stockholm for children with need of additional resources, and three upper secondary schools located in Stockholm, Gothenburg, and Malmö. In addition, Swedish Education Group run several higher vocational educations. The business includes Cybergymnasiet, Donnergymnasiet, Snitz, Enskede Byskola, and KYH.

Swedish Education Group AB had a turnover in 2019/20 of approximately SEK 360 million and EBITDA of approximately SEK 35 million. Turnover was distributed as 23 percent compulsory school, 59 percent upper secondary school, and 18 percent adult education. During the 2019/20 fiscal year, the company had approximately 2,470 compulsory and upper secondary students, and more than 900 higher vocational education participants. The number of employees were 320.

Integration with AcadeMedia

Upon approval of the acquisition, the acquired business will become part of AcadeMedia’s Compulsory School, Upper Secondary School, and Adult Education Segment. One school, Snitz, is a compulsory- and upper secondary school aimed at children with need of additional resources. This school will be included in the Compulsory School Segment.

Additional students and adult education participants were admitted at the start of the autumn semester 2020. Following the acquisition, the number of students in the Compulsory School Segment will increase by approximately 450 students and in the Upper Secondary School segment by approximately 2,150 students. The number of adult education participants in our higher vocational education is estimated to increase by 1,400 participants.

For more information, please contact:

Kristofer Hammar, Director of business development at AcadeMedia
Telephone: +46 70-105 22 08
E-mail: kristofer.hammar@academedia.se

Hanna Clausén, IR contact
Telephone: +46 8 794 42 62
E-mail: hanna.clausen@academedia.se

About AcadeMedia

AcadeMedia creates opportunities for people to develop. The 17,600 employees at our 661 preschools, compulsory schools, upper secondary schools, and adult education centres share a common focus on quality and development. Our 182,000 children and students are provided with a high-quality education, giving them the best conditions to attain both learning objectives and their full potential as individuals. AcadeMedia is Northern Europe ́s largest education company, with locations/facilities/presence in Sweden, Norway, and Germany. Our size gives us the capacity to be a robust, long term partner to the communities we serve. More information about AcadeMedia is available on www.academedia.se.

This information is information that AcadeMedia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CET 6 November 2020.