Afya Limited Announces Closing of the Acquisition of Além da Medicina

Rhea-AI Summary

Afya Limited (Nasdaq: AFYA) announced the successful acquisition of 100% of Além da Medicina through its subsidiary, Afya Participações S.A. This medical content platform offers valuable resources for physicians and medical students, contributing to Afya's digital ecosystem. With over 4,000 subscribers and a projected gross revenue of R$12.7 million for 2022, Além da Medicina enhances Afya's educational capabilities. The acquisition cost was R$16 million, fully paid in cash, with potential earn-outs of up to R$19.2 million based on performance metrics for 2023 and 2024.

Positive

• Acquisition of Além da Medicina enhances Afya's educational content and technology capabilities.
• Além da Medicina had over 4,000 subscribers and is projected to generate R$12.7 million in gross revenue for 2022.
• Potential earn-out of R$19.2 million based on revenue goals for 2023 and 2024 adds incentive for growth.

Negative

• The full cash payment of R$16 million may strain available liquidity.
• Integration challenges could arise given the reliance on performance metrics for additional earn-outs.

NOVA LIMA, Brazil--(BUSINESS WIRE)-- Afya Limited, or Afya (Nasdaq: AFYA) in addition to the Press Release released by the Company on February 24, 2022, today announced the closing of its acquisition, through its wholly-owned subsidiary Afya Participações S.A., of 100% of the total share capital of Além da Medicina.

Além da Medicina is a medical content online platform for physicians and medical students that provides educational tools besides technical medical content that can assist them throughout their careers. Its robust content includes mentoring for residency, soft skills, finance, accounting, and investment basics for physicians.

Além da Medicina had more than 4.000 subscribers in 2021, with a general NPS of 77 and almost 100.000 followers on Instagram. The company expects R$12.7 million of gross revenue for 2022.

This business combination incorporates new capabilities to the content & technology for the medical education pillar and further strengthens Afya's digital ecosystem.

The aggregate purchase price (enterprise value) paid to sellers was R$16.0 million, which was 100% paid in cash. An earn-out of up to R$ 19.2 million can be paid related to revenue goals established for 2023 and 2024.

About Afya

Afya is a leading medical education group in Brazil based on number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering digital products to help doctors enhance their healthcare services through their whole career.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220304005580/en/

Investor Relations Contact:

Afya Limited

ir@afya.com.br

Media Contact:

Cíntia Moraes Marin

cintia.marin@afya.com.br

Source: Afya Limited

FAQ

What is Afya Limited's recent acquisition news?

Afya Limited has acquired 100% of Além da Medicina, expanding its educational offerings in medical content.

What is the value of Afya's acquisition of Além da Medicina?

The total purchase price for Além da Medicina was R$16 million, fully paid in cash, with additional potential earn-outs.

What are the expected revenues from Além da Medicina?

Além da Medicina is projected to achieve gross revenues of R$12.7 million for 2022.

How does the acquisition impact Afya's market position?

The acquisition strengthens Afya's digital ecosystem and enhances its educational service offerings to physicians and medical students.

What performance metrics are tied to the earn-out from the acquisition?

The earn-out is contingent on revenue goals established for 2023 and 2024.