Seek Investment in Think: Education Group
SEEK Limited (ASX : SEK) announced today that it has agreed to acquire a 50% interest in Think: Education Group Pty Ltd, a leading private education group in Australia. SEEK will pay a total of $37.5m for the 50% stake, comprising $17.5m for the purchase of shares from the existing shareholders, and $20m as subscription for new shares. The subscription monies will be used to pay down debt and fund further acquisitions. The investment is expected to have a neutral impact on earnings per share in FY08 as Think: Education Group consolidates its acquisitions and invests in building internal capabilities. The Think: Education Group investment represents a further expansion of SEEK’s activities in the training and education market, which include SEEK Learning and 50% ownership of IDP Education Pty Ltd. It also reinforces SEEK’s position as a partner of choice for education and training companies in Australia.
Andrew Bassat, Joint Chief Executive of SEEK said: “We are very excited by this opportunity as we see the Think: Education Group business as highly complementary to our SEEK Learning operation. The partnership between SEEK and the current Think: Education Group shareholders will bring together a group of high quality education companies with the marketing, sales, technology and business development expertise that has made SEEK and SEEK Learning a success.
“Think: Education Group has a strong board and management team and has done an excellent job of making strategic acquisitions and improving the operations of these businesses. We expect that the addition of significant capital plus our ability to add value to Think: Education Group through our own expertise and experience will ensure that Think: Education Group becomes an even more formidable player in what is an extremely exciting and large market.
“SEEK has for some time been looking for opportunities to take large stakes in quality education providers as a means of leveraging the knowledge we have developed through SEEK Learning. We are delighted to have found an opportunity to make an important investment in this area.”
Robert Gavshon, Think: Education Group Chairman said: "We are thrilled at this new partnership, which follows a year of extraordinary growth for Think: Education Group. It was imperative for us that any potential partner share our approach to building quality private education operations, and Seek certainly fits the bill. We have a superb management team, lead by Mark Rohald and Anthony Bohm, and given our track record to date, and the reach and expertise which Seek will bring to our company, we are confident that Think: Education Group will soon become the dominant force in private education in Australia.
"About SEEK Limited:
seek.com.au currently hosts about two thirds of all online ads, equating to approximately 60% of all Internet and newspaper job ads in Australia. In any given month, over 190,000 job advertisements are posted on the SEEK website and approximately 2.3 million jobseekers lodge over 1 million job applications.
About SEEK Learning:
SEEK Learning is a division of SEEK Limited and is fast becoming the destination to find and commence career-related training and education. SEEK has formed several strategic partnerships with organisations including Open Universities Australia, Open Training & Education Network (TAFE NSW), Skillsoft and leading industry educators to provide both distance-based and classroom education that suits working adults.