Applecross-based global education group Navitas Ltd has entered into agreements to acquire Melbourne Education Group Pty Ltd and most of the shares in Australian Institute of Public Safety Pty Ltd for $2.2 million.
Applecross-based global education group Navitas Ltd has entered into agreements to acquire Melbourne Education Group Pty Ltd and most of the shares in Australian Institute of Public Safety Pty Ltd for $2.2 million.
Navitas chief executive officer said the acquisitions will fit well into the company's Worforce Division, which delivers educational programs designed to meet the skilled workforce needs in high demand industries.
The purchases follows Navitas' acquisition last month of Cytech Intersearch Pty Ltd, which is a small NSW-based labour hire company servicing the healthcare industry.
A copy of the Navitas statement is below:
Navitas Limited (ASX: NVT) today announced that it has entered into a share sale agreement to acquire 75% of the issued share capital of Australian Institute of Public Safety Pty Ltd (AIPS) and 100% of the issued share capital of Melbourne Education Group Pty Ltd (MEG) for $2.2 million.
AIPS is an independent tertiary education provider that offers accredited vocational and higher education courses in criminal justice, public safety and security. All AIPS courses are accredited by the Victorian Registration and
Qualifications Authority.
The acquisition represents a strong strategic fit with Navitas's existing operations and provides the opportunity to create value for shareholders.
Navitas Chief Executive Officer Rod Jones said the Company was delighted at the opportunity this transaction presented.
"This is a natural fit for Navitas and clearly supports the objectives of our Workforce Division which is about the delivery of educational programs designed to meet the skilled workforce needs in high demand industries," said Mr Jones.
"We see a great opportunity to roll out AIPS to Sydney and other state capitals and also to leverage off our international marketing and distribution network."
MEG is a Registered Training Organisation offering practical vocational training courses.
As privately owned businesses, AIPS and MEG have enjoyed strong growth in recent years under the direction of founder, Mr Tony Zalewski.
"We believe that with the financial and management support of Navitas, these institutions will continue to grow at a rapid pace and allow for the delivery of our courses at other Navitas campuses outside Victoria" said Mr Zalewski.
Mr Zalewski will continue to contribute to the growth and direction of the businesses as General Manager, AIPS and will retain 25% equity in AIPS.
Completion of the acquisition is expected to be on or about 1 July 2008. The acquisition price represents a multiple of approximately 5 times forecast EBITDA for the year ending 30 June 2008.
