Vasta announces closing of investment in Educbank

Rhea-AI Summary

Vasta Platform Limited (NASDAQ: VSTA) has completed a R$158 million investment for a 47.4% stake in Educbank, a financial service aimed at managing K-12 tuition payments in Brazil. The investment comprises R$88 million in cash, contingent on student growth, and R$70 million from the sale of intangible assets. This strategic move will enhance Vasta's digital services platform, allowing it to tap into the R$70 billion annual tuition payment market. Vasta aims to support K-12 schools in their digital transformation while providing financial management solutions.

Positive

• Acquisition of 47.4% stake in Educbank positions Vasta to access the R$70 billion annual K-12 tuition payment market.
• Investment total is R$158 million, indicating strong commitment to growth.
• Educbank enhances Vasta's digital platform by integrating financial services, which complement existing educational solutions.

Negative

• None.

SÃO PAULO, Brazil, July 19, 2022 (GLOBE NEWSWIRE) -- Vasta Platform Limited (NASDAQ: VSTA) announces the completion, by its wholly-owned subsidiary, Somos Sistemas de Ensino S.A. (“Somos”), of the minority investment in Educbank Gestão de Pagamentos Educacionais S.A. (“Educbank”). Vasta investment will total R$158 million, for a 47.4% stake in Educbank, to be paid in: (i) cash installments totaling R$88 million, according to the growth of students served by Educbank and other conditions, and (ii) upon capitalization of credits arising from the sale of intangible assets by Somos (R$ 70 million). Vasta will have the right to appoint two members (out of six) to the board of directors of Educbank.

Educbank is the first financial ecosystem dedicated to K-12 schools, intended to expand access to quality education in Brazil, through services’ management and financial support to educational institutions by providing payment guaranty to school tuitions. This investment will enable Vasta to capture great value potential in the following years, by tapping the K-12 tuitions payment means, which total payment volume (TPV) surpasses R$70 billion per year. Educbank’s services complement Vasta’s digital services platform, which provides access to data, management tools and now working capital management, releasing time for school partners to focus on delivering education.

ABOUT VASTA

Vasta is a leading, high-growth education company in Brazil powered by technology, providing end-to-end educational and digital solutions that cater to all needs of private schools operating in the K-12 educational segment, ultimately benefiting all of Vasta’s stakeholders, including students, parents, educators, administrators and private school owners. Vasta’s mission is to help private K-12 schools to be better and more profitable, supporting their digital transformation. Vasta believes it is uniquely positioned to help schools in Brazil undergo the process of digital transformation and bring their education skill-set to the 21st century. Vasta promotes the unified use of technology in K-12 education with enhanced data and actionable insight for educators, increased collaboration among support staff and improvements in production, efficiency and quality. For more information, please visit ir.vastaplatform.com.

CONTACT

Investor Relations
ir@vastaplatform.com

FAQ

What is Vasta's recent investment in Educbank?

Vasta invested R$158 million for a 47.4% stake in Educbank, focusing on K-12 tuition payment services.

How does Vasta's investment affect its business strategy?

The investment expands Vasta's digital services and allows access to the R$70 billion K-12 education payment market.

What are the payment terms of Vasta's investment in Educbank?

The investment includes R$88 million in cash based on student growth and R$70 million from the sale of intangible assets.

What is the significance of Educbank in the education sector?

Educbank is the first financial ecosystem for K-12 schools in Brazil, aimed at enhancing access to quality education.

What board representation will Vasta have in Educbank?

Vasta has the right to appoint two out of six members to Educbank's board of directors.