NOVA LIMA, Brazil – ECNETNews reports that Afya Limited, a leader in medical education and practice solutions in Brazil, has announced a significant acquisition. The company has entered into a share purchase agreement to acquire 100% of Faculdade Masterclass Ltda., known as Faculdade Única de Contagem (FUNIC), through its subsidiary Afya Participações S.A.
The acquisition will introduce 60 new medical school seats in Contagem, an area within the metropolitan region of Belo Horizonte, Minas Gerais’ capital. FUNIC is currently pre-operational, with facilities ready for the initiation of medical education programs. This will mark Afya’s fifth medical school in Minas Gerais, positioning the institution as an academic cornerstone for other medical campuses in the state. Specific details regarding the inaugural intake will be confirmed following the completion of the acquisition process.
The total purchase price is set at R$ 100 million, with net debt subtracted at closing. Payment conditions stipulate that R$ 60 million will be paid in cash at the time of closure, and R$ 40 million will follow in three annual installments, subject to adjustments based on the Brazilian interbank interest rates.
Additionally, there is a possibility for expanding the number of seats by another 60. Should the Brazilian Ministry of Education approve this expansion within 36 months post-closing, an extra payment of R$ 1 million per seat, up to the limit of 60 seats, will be incurred.
Afya anticipates an enterprise value to EBITDA ratio of 3.3x by 2030, once the acquisition reaches full operational maturity and synergies are realized, with projected net revenues of R$ 52.4 million, entirely sourced from medicine.
Finalization of the transaction is pending standard conditions, including regulatory approval from antitrust authorities.
