Afya Limited Announces the Acquisition of CardioPapers

Rhea-AI Summary

Afya Limited (NASDAQ: AFYA) has announced the acquisition of 100% of CardioPapers for an enterprise value of R$35.0 million, paid in cash. CardioPapers is a leading medical content and education platform in Cardiology, offering over ten courses and engaging nearly 215,000 followers on Instagram. The platform generated R$18.8 million in gross revenue for 2022. Additional earn-out payments of up to R$15 million may be made based on revenue and other goals for 2023 and 2024. This acquisition is expected to enhance Afya's digital ecosystem and capabilities in medical education.

Positive

• Acquisition of CardioPapers strengthens Afya's medical education offerings.
• Access to over ten specialized cardiology courses expands Afya's educational portfolio.
• CardioPapers' strong following indicates a robust market presence with growth potential.
• Projected gross revenue of R$18.8 million for CardioPapers enhances Afya's financial outlook.

Negative

• 100% cash payment for the acquisition may strain Afya's liquidity.
• Potential integration challenges with aligning CardioPapers' operations into Afya's ecosystem.

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 CardioPapers.

CardioPapers is the main medical content and education platform in the Cardiology field, offering courses and books developed by physicians and for physicians, covering all phases of the medical career, aligned with Afya’s overall business strategy.

The platform includes more than ten courses, such as a cardiology specialist degree preparatory course, cardiological emergencies course, preoperative course, dyslipidemia course, EKG course and diabetes course, exploring the cardiologic medical field and also expanding to other medical areas.

CardioPapers had 7,000 students in 2021 and almost 215,000 followers on Instagram. The company expects R$18.8 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$35.0 million, of which 100% was paid in cash. An earn-out of up to R$15 million can be paid, R$14 million related to revenue goals and R$1 million related to other goals, both established for 2023 and 2024.

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/20220405006184/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 acquisition did Afya Limited announce?

Afya Limited announced the acquisition of CardioPapers for R$35.0 million.

How much revenue is CardioPapers expected to generate in 2022?

CardioPapers is expected to generate R$18.8 million in gross revenue for 2022.

What courses does CardioPapers offer?

CardioPapers offers over ten courses, including cardiology specialist degree preparatory courses and various cardiological emergency courses.

What are the earn-out details related to the CardioPapers acquisition?

An earn-out of up to R$15 million can be paid based on revenue and other goals for 2023 and 2024.

How will the CardioPapers acquisition impact Afya's business strategy?

The acquisition is expected to strengthen Afya's digital ecosystem and enhance its capabilities in medical education.