Afya Acquires Medical Schools In Northeastern Brazil
The Brazilian education provider Afya has strengthened its position as the country’s largest private provider of medical education by acquiring two medical schools in northeastern Brazil. The purchase increases the number of Afya’s medical school seats to 3,163. Bertelsmann Education Group holds 59 percent of the voting rights and 40 percent of the capital shares in Afya.
Afya has announced the completion of the biggest acquisition in its history. The Brazilian education provider, part of Bertelsmann Education Group, has taken over 100 percent of Sociedade Educacional e Cultural Sergipe DelRey Ltda. DelRey includes Centro Universitário Tiradentes Alagoas (UNIT Alagoas) and Faculdade Tiradentes Jaboatão dos Guararapes (FITS Jaboatão dos Guararapes), two medical schools in northeastern Brazil. The purchase price was 825 million Brazilian reals, or about €150 million, according to New York Nasdaq-listed Afya. Completed in January, the acquisition significantly expands Afya’s presence in northeastern Brazil and marks its entry into the Brazilian state of Alagoas.
Together, UNIT Alagoas and FITS Jaboatão dos Guararapes have 340 medical student seats; in addition, an application has been submitted to the Brazilian Ministry of Education for the approval of 84 further seats. The takeover of the two universities brings Afya’s total number of medical student seats to 3,163. According to Afya, equates to as many as 22,774 medical students given the six to seven years of study to earn the medical degree. The acquisition does not include the rights to the UNIT and FITS brands, but Afya can continue to use them during its first year of operating the two universities. For fiscal 2024, UNIT Alagoas and FITS Jaboatão dos Guararapes expect to generate net income of 261 million reals (about €47 million), 87 percent of which will come from medical courses.
Afya CEO Virgilio Gibbon said the company is very excited about the acquisition of these premium UNIT assets. “This is a milestone for Afya, representing the largest acquisition in our history.” He adds that it has reinforced Afya’s leadership position in medical education in Brazil. The acquisition brings the total number of Afya sites to 35. Bertelsmann Education Group holds 59 percent of the voting rights and 40 percent of the capital shares in Afya.