Afya and Yduqs Complete Merger to Create R$9 Billion Education Group

Overview

• The companies confirmed the deal in a formal disclosure after negotiations, with the transaction closed and publicly announced on Wednesday, Sept. 23.
• Afya will be the controlling shareholder with roughly 69% of the combined group while Yduqs keeps about 31% and a contractual right to withdraw at least R$750 million in dividends.
• Reporting attributes the merged entity with around R$9 billion in annual revenue and an Ebitda near R$3.4 billion, giving the group a materially larger financial footprint in Brazil’s higher education market.
• Valor’s reporting says Bertelsmann, Afya’s largest shareholder, will hold about 47% of the combined company and take seats on the board, a development that changes governance dynamics.
• The merged company will keep the Yduqs name and bring together well-known brands such as Ibmec, Estácio and Unigranrio, expanding scale to roughly 5,900 medical seats and about 1.5 million students which could shift competition for places and investment in medical training.