Afya to Expand Medical Education Reach With FUNIC Acquisition

Afya Limited AFYA, a leader in medical education and practice solutions in Brazil, has taken another significant step toward strengthening its market position. The company has announced a share purchase agreement to acquire 100% of Faculdade Única de Contagem (FUNIC) through its subsidiary, Afya Participações S.A.Located in Contagem, a city in the metropolitan area of Belo Horizonte, Minas Gerais, FUNIC will become Afya’s fifth medical school in the state. The acquisition brings an immediate addition of 60 medical school seats, further enhancing Afya’s capacity to educate future healthcare professionals. With a pre-operational campus already equipped for academic activities, FUNIC is poised to become an academic hub supporting Afya’s other medical campuses across Minas Gerais.The total purchase price for the acquisition is R$ 100 million, with R$ 60 million to be paid upfront in cash at closing. The remaining R$ 40 million will be settled in three annual installments, adjusted by Brazil’s interbank interest rates. Additionally, there is potential for an expansion of 60 more seats. If approved by Brazil’s Ministry of Education within three years, this could lead to an extra payment of R$ 1 million per seat, capped at R$ 60 million.Afya anticipates significant financial returns from this acquisition. The company expects an EV/EBITDA multiple of 3.3x at full maturity by 2030, with expected net revenues of R$ 52.4 million, all derived from the medical education segment.Subject to customary closing conditions, including antitrust approval, this acquisition aligns with Afya's strategy to solidify its leadership in Brazil’s medical education market. By leveraging synergies and expanding the company’s network, Afya is positioning itself for robust long-term growth while delivering substantial value to stakeholders.With this acquisition, Afya continues to demonstrate its commitment to advancing medical education in Brazil, fostering innovation and creating opportunities for future healthcare professionals.Afya’s Price PerformanceShares of the company have lost 5.7% in the past three months against the industry’s growth of 7.7%. Image Source: Zacks Investment ResearchHowever, the company’s focus on accretive buyouts, operational restructuring efforts and other business initiatives to offer top-tier medical education services are likely to bring the stock back on track.The company currently has a Zacks Rank #3 (Hold).Key PicksStride, Inc. LRN sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.LRN delivered a trailing four-quarter earnings surprise of 100.8%, on average. The stock has surged 79.2% in the past year. The Zacks Consensus Estimate for LRN’s 2025 sales indicates growth of 7.8% from the year-ago levels.Universal Technical Institute, Inc. UTI sports a Zacks Rank #1.UTI delivered a trailing four-quarter earnings surprise of 54.6%, on average. The stock has surged 119.3% in the past year. The Zacks Consensus Estimate for UTI’s 2025 sales indicates growth of 7.4% from the year-ago levels.Strategic Education, Inc. STRA carries a Zacks Rank #2 (Buy).STRA delivered a trailing four-quarter earnings surprise of 40.4%, on average. The stock has increased 3.2% in the past year. The Zacks Consensus Estimate for STRA’s 2025 sales indicates growth of 4.9% from the year-ago levels.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strategic Education Inc. (STRA): Free Stock Analysis Report Universal Technical Institute Inc (UTI): Free Stock Analysis Report Stride, Inc. (LRN): Free Stock Analysis Report Afya Limited (AFYA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks