Afya Limited Announces the Acquisition of Glic

Rhea-AI Summary

Afya Limited (AFYA) has acquired Glic, a diabetes care app, through its subsidiary Afya Participações S.A. The purchase, valued at R$22 million in cash, aims to enhance Afya's digital services strategy. Glic boasts over 90,000 active users and 1,100 physicians, projecting gross revenues of R$3.7 million for 2022. An additional earn-out of up to R$12 million is contingent upon achieving specific revenue targets in 2023 and 2024. This acquisition strengthens Afya's position in the physician-patient relationship sector.

Positive

• Acquisition of Glic enhances Afya's digital services strategy.
• Glic has over 90,000 active users and 1,100 physicians, indicating strong adoption.
• Projected gross revenue of R$3.7 million for Glic in 2022.
• Potential earn-out of R$12 million can drive future performance.

Negative

• The entire purchase price of R$22 million was paid in cash, which may impact liquidity.
• Earn-out payments are contingent on achieving ambitious revenue goals, adding uncertainty.

NOVA LIMA, Brazil--(BUSINESS WIRE)-- Afya Limited, or Afya (Nasdaq: AFYA) today announced the acquisition, through its wholly-owned subsidiary Afya Participações S.A, of 100% of Glic.

Glic is a free diabetes care and management app solution for physicians and patients that uses technology to improve diabetes education and daily routine practices, connecting users, devices and health providers.

Glic has more than 90.000 active end-users, and more than 1.100 physicians using the app. The company expects R$3.7 million of gross revenue for 2022.

This business combination represents the entering into the physician-patient relationship pillar and further strengthens Afya's digital services strategy and ecosystem.

The aggregate purchase price (enterprise value) paid to sellers was R$22 million, of which 100% was paid in cash. An earn-out of up to R$12 million can be paid, R$9 million related to revenue goals established for 2023 and 2024, and R$3 million related to product development and integration.

More information available on: https://ir.afya.com.br/ >> News & Events >> Presentations

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/20220523006010/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 purpose of Afya's acquisition of Glic?

The acquisition aims to enhance Afya's digital services and strengthen the physician-patient relationship.

How much did Afya pay for Glic?

Afya paid R$22 million in cash for the acquisition of Glic.

What is Glic's projected revenue for 2022?

Glic is projected to generate R$3.7 million in gross revenue for 2022.

What additional payments could Afya make related to the Glic acquisition?

Afya may pay an earn-out of up to R$12 million based on revenue goals and product development.

How many active users does Glic have?

Glic has over 90,000 active end-users utilizing its diabetes care app.