Brazil: Grupo Abril Buys Wise Up

Abril Educação announced the acquisition of the Wise Up language course in a business transaction estimated at 877 million reals (aprox USD 445 million).

During the first stage of the deal, Abril Educação will acquire 56.67% of Wise Up’s capital assets, paying the sum of 221 million reals up front. The amount will be covered with funds from bank financing with a five-year term. Two other 133 million real installments will be paid on the fourth and fifth anniversary of the date the acquisition deal is finalized.

The remaining 43.33% Wise Up shares will be exchanged for a little over 8 million units representing Abril Educação stock, equivalent to 9.7% of the company’s capital. In possession of the new shareholders, the stocks will have certain negotiation restrictions for a period of up to 18 months, known in the market as a lock up.

This is the seventh acquisition by the company in the past 19 months. The amount will be paid in installments and may be adjusted according to Wise Up’s EBIDTA. Founded in 1995, Wise Up has 76,000 students and a network of 338 franchised schools in 89 Brazilian cities.