Ataa Educational signs SAR 138 mln deal to acquire Arabian Education Group

Ataa Educational Co. inked an agreement to acquire the entire shares of Arabian Education and Training Group Holding Co. for a total value of SAR 138 million, according to a bourse filing. 

The agreement, which will be financed by bank credit facilities, followed the completion of the due diligence process by the company’s financial and legal advisors.

According to the company’s financial statements for the last three years, its revenue stood at SAR 228.6 million for the year ended on July 31, 2020; SAR 89.5 million for the year ended on July 31, 2019 (seven months); and SAR 149.8 million for the year ended on Dec. 31, 2018.

Net profit stood at SAR 4.7 million for the year ended on July 31, 2020; SAR 11.7 million for the year ended on July 31, 2019 (7 months); and SAR 10 million for the year ended on Dec. 31, 2018.

This acquisition deal comes in line with Ataa’s strategy to expand services in the education and training sectors and to boost return on equity (RoE) for the company's shareholders.

The relevant financial impact is expected to appear on Q1 of fiscal year ending July 31, 2022.

In February, Ataa signed a binding memorandum of understanding (MoU) with Arabian Education to acquire 100% of the company's shares in exchange for cash and shares in Ataa Educational, data compiled by Argaam showed.

Arabian Education and Training Group is a closed Saudi joint-stock company with a paid-up capital of SAR 200 million. Its affiliate companies include Alfaisal International Academy, Naba Company, Creative Development Company, Academic Company for Educational Service, Al-Jawdah Private Schools, Almanahij Schools, Al-Yasmin International Schools, Al-Alson International Schools, Amjad Qurtoba Schools, and Glory Generation International School.