Global education services provider Navitas Limited (NVT) announced that it has entered into an agreement to acquire 100% of SAE Group (SAE), a leading global provider of creative and new media education. Navitas is acquiring SAE for A$289 million, representing 8.75x estimated CY2010 EBITDA. The transaction will be funded by way of new debt facilities, a fully underwritten institutional equity placement and issuance of shares to the vendor.
Founded in Australia in 1976, SAE has expanded to become one of the world’s largest media technology training institutes, with 47 campuses in 19 countries. SAE offers a range of post secondary education opportunities to approximately 8,000 students, including certificate, diploma, degree and Masters programs across three major fields of study: audio production, film production and interactive media. SAE benefits from high brand recognition within its core markets and is well placed to continue to benefit from growth in demand for multimedia and technology skills. SAE owns and maintains its key intellectual property and delivers its programs via a combination of classroom based teaching and practical learning in its state-of-the-art training facilities.
“The combined Navitas and SAE business will have over 50,000 students enrolled across 97 campuses around the world and will provide a platform for further expansion into key international markets,” said Navitas Chief Executive Officer, Rod Jones. “Over three decades SAE has built a global reputation as a high quality provider of creative and new media education and, as a leader in its field, SAE is well positioned to take advantage of the increasing global demand for skills based training in these areas.” “Navitas and SAE share a commitment to quality educational outcomes for students and are both equally focused on strong organic growth within their respective fields. SAE will continue to be driven by its existing management team and will maintain its pioneering approach and culture.”
Navitas has entered into new 3 year debt facilities with Westpac and ANZ of A$200 million to fund the transaction. Navitas has today launched a fully underwritten institutional equity placement to raise A$100 million. In addition, Navitas will offer a Share Purchase Plan (SPP) at the same price as the institutional placement.
Navitas is a diversified global education provider that offers an extensive range of educational services for students and professionals including university programs, English language training and settlement services, workforce education and student recruitment. Navitas is the industry leader in pre-university and university pathway programs. It offers university programs from colleges in Australia, the UK, the US, Canada, Singapore, Sri Lanka and Africa. Navitas also offers student recruitment services in India and China for universities and other educational institutions in Australia, Canada, the US and the UK.