Ataa Educational inks deal to fully buy Al-Elm International Schools for SAR 40 mln

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Ataa Educational Co. signed today, Dec. 22, an agreement to fully acquire Al-Elm International Schools LLC for a total value of SAR 40 million.

The required due diligence was finalized by an independent advisor, Ataa said in a bourse statement on Tuesday.

The acquisition, which will be financed from Ataa internal resources, is part of the company’s strategy to expand in the educational sector and aggrandize the return on equity for its shareholders.

The financial impact is expected to show starting from Q4 2020/21 which ends on July 31, 2021.

Board members Ahmed Al-Muttab and Farah Bint Ahmed Al-Muttab have indirect interest in the deal, the statement added.

The deal is subject to the approval of the General Authority for Competition (GAC), other regulatory authorities and the company’s general assembly.

Ataa added that any updates will be disclosed in due course.

Al-Elm International Schools LLC owns and operates Education International campus in Riyadh. It operates and develops pre-primary, primary, preparatory and secondary curricula for boys and girls.

The target schools reported revenues of SAR 22.5 million in 2019, compared to SAR 16.6 million a year earlier.

In 2018, Al-Elm International Schools Co.’s net profit stood at SAR 3.7 million in 2019, compared to SAR 1.3 million a year earlier. In 2017, Al-Elm International Schools Co.’s  revenues hit SAR 24 million, despite net losses of SAR 1.9 million.