Ataa Educational takes over Al-Falah Schools in Riyadh for SAR 50 mln

Ataa Educational Co. said it bought out Al-Falah Co.’s (LLC) Riyadh-based Al-Falah Schools for a total value of SAR 50 million, according to a bourse statement.

The deal’s value was determined after finalizing the due diligence process and other financial and legal procedures.

The deal, which will be financed via a banking facility, came in line with Ataa’s expansionary strategy aimed at boosting the return on shareholders' equity (ROE).

The relevant financial impact is expected to reflect on Ataa’s earnings as of Q4 of the fiscal year ending July 31, 2020.

In November, Ataa Educational signed a non-binding memorandum of understanding (MoU) with Al-Falah Co. to acquire Riyadh-based Al-Falah Schools.

Al-Falah Co. reported SAR 19.673 million in revenues in 2017, SAR 17.065 million and SAR 16.608 million in 2018 and 2019 respectively.