DeVry Group continues to build on its global diversification strategy
DOWNERS GROVE - DeVry Education Group, a global provider of educational services, announced that DeVry Brasil has acquired 96.4 percent of Grupo Ibmec Educacional S.A. (Ibmec), for a proportional enterprise value of R$699 million, subject to closing adjustments.
Ibmec operates campuses located in Rio de Janeiro, Brasilia and Belo Horizonte, and in Campinas, where it operates under the name Metrocamp. A nationally recognized educational institution, Ibmec has been widely-known for its academic excellence for more than 40 years, and it currently serves nearly 15,000 undergraduate and graduate students on-site and online throughout Brazil.
"We are looking beyond the current market disruptions and focusing on the long-term opportunities in higher education in Brazil. We are making this acquisition now because there are so few opportunities to acquire an institution of Ibmec's caliber," said Daniel Hamburger, president and CEO of DeVry Education Group. "Ibmec is an excellent strategic fit that will increase our presence in Brazil's largest region. We see strong growth opportunities including distributing Ibmec's high-end programs through the DeVry Brasil network."
Ibmec is unique among private sector colleges in Brazil, with a strong brand, supported by highly-ranked programs. Ibmec offers programs in business, law, and engineering taught by highly recognized faculty in premier locations with access to major employers in Brazil.
Ibmec enhances DeVry Brasil's position as a private-sector education provider. Expansion plans include distributing Ibmec's programs through the DeVry Brasil network, expansion to new campuses and growing corporate education.
Total revenue in 2015 is projected to be R$235 million. Ibmec has a relatively low exposure to the FIES student loan program, which currently represents approximately 11 percent of Ibmec's total revenue. Through the implementation of its proven acquisition integration playbook, DeVry Group expects to further improve performance. The acquisition is expected to be accretive to DeVry Group's adjusted earnings in fiscal 2016 and beyond.