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AEC Education
- BY: Andrew Hore |
- POSTED: 02/07/2009 |
AEC Education has gained a foothold in the UK education market by acquiring Malvern House.
The educational qualifications and programmes provider will pay up to £3.99m in cash and shares for Malvern House, which operates three colleges in central London. The customer base is foreign students, which AEC has historically lost if they decide to come to London to learn English or business administration.
Malvern House educates more than 6,000 students from more than 90 countries each year. Malvern House generated profits of £626,000 on revenues of £6.06m in the year to June 2008. The company’s co-founder Naresh Malhotra will join the AEC board.
The initial outlay is £1.5m in cash plus £900,000 in shares at 12p each. There is also an initial £840,000 to pay for consolidated shareholders funds – the exact amount depends on completion accounts. A further £500,000 plus interest is payable 90 days after the acquisition is completed. The final £350,000 payment is dependent on the pre-tax profit for the year to June 2009.
Shares in AEC dipped 2p to 23.5p each, which values the company at £7.42m.
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