Afya Limited Announces Entering into a Purchase Agreement for the Acquisition of Além da Medicina

Rhea-AI Summary

Afya Limited (NASDAQ: AFYA) has announced its acquisition of 100% of Além da Medicina, an online medical content platform, through its subsidiary Afya Participações S.A. This acquisition, valued at R$16.0 million, is subject to customary conditions and involves a potential earn-out of up to R$19.2 million based on revenue targets for 2023 and 2024. Além da Medicina, which projects R$12.7 million in gross revenue for 2022, enhances Afya's digital ecosystem by providing educational tools and resources to medical professionals.

Positive

• Acquisition value of R$16.0 million expected to enhance Afya's digital education capabilities.
• Além da Medicina has an established user base and strong social media presence, with over 4,000 subscribers and nearly 100,000 Instagram followers.
• Projected gross revenue of R$12.7 million for Além da Medicina in 2022.
• Potential earn-out of R$19.2 million tied to revenue goals for 2023 and 2024.

Negative

• None.

NOVA LIMA, Brazil--(BUSINESS WIRE)-- Afya Limited, or Afya (Nasdaq: AFYA) has executed the purchase agreement for the acquisition of 100% of the total share capital of Além da Medicina, through its wholly-owned subsidiary Afya Participações S.A. The consummation is subject to certain customary precedent conditions.

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) is R$16.0 million and will be paid to sellers in cash. An earn-out of up to R$ 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 the 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/20220224006088/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 the acquisition announced by Afya Limited?

Afya Limited has acquired 100% of Além da Medicina, a medical content platform, to enhance its digital education offerings.

How much did Afya pay for Além da Medicina?

The acquisition of Além da Medicina is valued at R$16.0 million.

What revenue does Além da Medicina project for 2022?

Além da Medicina projects gross revenue of R$12.7 million for 2022.

What is the potential earn-out related to the acquisition?

Afya may pay an additional earn-out of up to R$19.2 million based on revenue targets for 2023 and 2024.

How does the acquisition affect Afya's digital ecosystem?

The acquisition strengthens Afya's digital ecosystem by adding educational resources and tools for medical professionals.