Laureate Education, Inc. agrees to sell its institution in Malaysia to Affinity Equity Partners
BALTIMORE, MARYLAND – December 15, 2017 – Laureate Education, Inc. (NASDAQ: LAUR), the world’s largest global network of higher education institutions, and Affinity Equity Partners, one of the largest independent private equity firms in the Asia Pacific region, have signed an agreement for the sale of Laureate’s global network institution in Malaysia – INTI University and Colleges – for a total transaction value of USD180 million. The net transaction value to Laureate under the Agreement will be USD162 million.
INTI University and Colleges, which has five campuses across Malaysia, is highly regarded in Malaysia with over three decades of rich history and track record. INTI, which has seen its student numbers grow progressively to over 16,500 students this year, has a higher than market average employability rate of 99% within six months of graduation, as validated by BDO Governance Advisory in 2016.
Founded in 1998, Affinity Equity Partners (Affinity) is one of the Asia Pacific region’s largest and longest established independent private equity firms. Affinity currently has total assets under management of USD8 billion. The investment in INTI is made under Affinity Asia Pacific Fund IV. Affinity has an unparalleled investing track record in Malaysia, having invested in Island Hospital, a leading hospital in medical tourism in Malaysia, and Leong Hup International, one of Southeast Asia’s largest integrated poultry producers. INTI will be Affinity’s third investment in Malaysia over the past four years, demonstrating Affinity’s continued commitment to supporting and growing regional champions from Malaysia.
Commenting on the transaction, Eilif Serck-Hanssen, President, and incoming Chief Executive Officer of Laureate, effective January 1, 2018, said, “I am proud of the many accomplishments of INTI University and Colleges in Malaysia, which has over the years established a strong leadership position in the private higher education market through academic innovation, industry partnerships, and student outcomes. I believe INTI is well-positioned under Affinity going forward, and I am pleased that they have expressed strong commitment to continuing our legacy of academic quality and excellent outcomes for students.”
Commenting on the transaction, Benny Lim, Managing Director at Affinity, said, “Affinity is honored to become custodians of INTI’s strong legacy. We are very excited with the opportunity to work with INTI’s impressive team to further enhance the academic and student life experience. Affinity is committed to making the appropriate investments, financial and otherwise, to help INTI become the leading higher education institution in Malaysia. In due course, we hope to bring the INTI experience beyond Malaysia.”
The transaction value amounts to USD180 million, which includes a USD18 million value for a minority equity shareholder, subject to customary closing adjustments. The closing is expected to occur by the end of the second quarter of 2018. The two parties look forward to a smooth transition and timely completion of the process.
Rothschild acted as exclusive financial advisor to Laureate Education, Inc., while DLA Piper acted as legal advisor. Linklaters and Wong & Partners, a member firm of Baker McKenzie International, acted as legal advisors to Affinity Equity Partners.