More Growth: Yduqs Acquires Edufor, adding 118 Medical School seats and 2,800 On-Campus Students
This marks the company's second acquisition this semester, with new operations potentially leading to an upward revision of projections disclosed in May.
Rio de Janeiro, December 6, 2024 – Yduqs has finalized the acquisition of Faculdade Edufor in São Luís (Maranhão). The deal encompasses 118 medical school seats and 179 medical students, in addition to 2,800 on-campus undergraduates, 90% of whom are enrolled in Law or healthcare courses. The transaction, valued at R$ 145 million, involves an initial payment of 50% upfront, with the remaining balance will be paid in five annual installments adjusted for inflation (IPCA).
This is Yduqs' second acquisition of the semester, following its November integration of Centro Universitário Newton Paiva in Belo Horizonte. These developments may prompt an upward revision of the company’s May projections, which will be reassessed after the first quarter of 2025. While these acquisitions do not affect Yduqs' projected cash generation for 2025, they are expected to positively impact results starting in 2026, with only a marginal effect on the company's deleveraging process.
Edufor’s programs will be incorporated into Yduqs' national brands, with medical courses joining IDOMED and all other programs transitioning to Estácio.
“In May, we presented our acquisition framework. Edufor exemplifies this perfectly—it’s well-priced, offers strong growth potential that complements our organic growth, and strikes a balance in terms of debt,” said Eduardo Parente, Yduqs’ CEO. “IDOMED is making another significant leap, alongside the growth from its maturing units. Our goal is to maintain the high quality that has made the brand the most sought-after in the country today. We’re poised for strong growth.”
IDOMED Surpasses 2,000 Annual Seats
IDOMED, which now encompasses 18 medical schools within the group, continues to outpace market growth. It has achieved a 72% utilization rate for additional seats allocated under the "Mais Médicos I" program and 85% under "Mais Médicos II," compared to 51% and 68%, respectively, for other listed players.
Edufor’s 118 annual seats complement the 340 additional seats IDOMED secured in 2024, bringing its total to 2,044 seats per year.
The acquisition includes an earn-out clause tied to potential additional Medical School seats, valued at R$ 1 million per authorized seat, contingent upon approval by Brazil’s Ministry of Education (MEC) by November 2027.
Edufor’s seats were authorized following a Supreme Court decision last year regarding the establishment of new Medical mchools. These seats were part of a batch that had already progressed beyond the MEC’s initial review stage and were deemed eligible to continue the process. The first 58 seats were authorized in June 2023, with an additional 60 approved in August 2024.
Edufor’s program exhibits strong organic growth: currently, its most advanced medical students are in their second year of the six-year program.
A Complementary On-Campus Portfolio for Estácio in São Luís
With approximately 90% of its 2,800 on-campus students enrolled in Law or Healthcare courses, Edufor’s offerings align with and complement Estácio’s portfolio geographically and strategically.
Edufor, which began operations in 2017, achieved top scores of 4 and 5 in the MEC’s 2022 evaluation cycle, underscoring its academic excellence.