Vasta announces investment in Educbank

Rhea-AI Summary

Vasta Platform Limited (NASDAQ: VSTA) has entered a minority investment agreement through its subsidiary, Somos Sistemas de Ensino S.A., with Educbank Gestão de Pagamentos Educacionais S.A. The investment, which will be executed in installments over two years, aims to capitalize on the K-12 tuition payment market in Brazil, valued at R$70 billion annually. The deal is contingent upon approval from the Brazilian antitrust authority. This strategic move is expected to complement Vasta's digital services portfolio, enhancing financial support for educational institutions.

Positive

• Vasta's investment in Educbank positions it to leverage a R$70 billion annual K-12 tuition payment market.
• The investment is expected to enhance Vasta's digital services, facilitating financial management for educational institutions.

Negative

• The closing of the investment is subject to Brazilian antitrust authority approval, introducing potential delays.
• The investment relies on the growth of students served by Educbank, which carries inherent risks.

SÃO PAULO, Brazil, June 03, 2022 (GLOBE NEWSWIRE) -- Vasta Platform Limited (NASDAQ: VSTA) announces the execution of a minority investment agreement by its wholly-owned subsidiary, Somos Sistemas de Ensino S.A. (“Somos”), which establishes the terms and conditions for the issuance and the payment of new shares on Educbank Gestão de Pagamentos Educacionais S.A. (“Educbank”). According to the agreement, the investment will be made in installments over a two-year period, upon subscription of new Educbank shares, according to the growth of students served by Educbank and other conditions. The closing of the transaction is subject to certain conditions precedent, including the approval by the Brazilian antitrust authority.

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) is estimated at 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
ri@somoseducacao.com.br

FAQ

What is Vasta's recent investment in Educbank about?

Vasta Platform has announced a minority investment in Educbank aimed at tapping into Brazil's K-12 tuition payment market.

What is the estimated market value for K-12 tuition payments in Brazil?

The K-12 tuition payment market in Brazil is estimated to be R$70 billion annually.

How long will Vasta's investment in Educbank be executed?

The investment will be made in installments over a two-year period.

What approvals are needed for Vasta's investment in Educbank?

The investment is subject to approval from the Brazilian antitrust authority.