Afya and Yduqs merge to form US$2.3B Brazilian education giant
What's the deal? Brazilian medical-education group Afya has signed an agreement to merge with rival YduqsDealroom has a profile for this one. Try Dealroom →, creating a company with revenue of about US$2.3B, according to people familiar with the matter. The deal was announced in late September, with Afya taking the majority stake.
What's the endgame? The combined company will hold a 17% share of Brazil's medical-school market, according to JP Morgan. That positions the merged entity as a dominant player in one of the country's most lucrative higher-education segments.
What could go wrong? A tie-up of this scale in medical education is likely to draw scrutiny from Brazil's competition regulators, given the market concentration involved. The financial terms of the deal were not disclosed.
The signal: The merger points to continued consolidation in Brazil's private education sector, where operators are combining to gain scale in high-margin professional courses. Medicine, with its steep tuition and steady demand, remains the prize.
Read more: valor.globo.com
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