Acquisition is being financed by the company itself

Jamaica-based online educational institution EduFocal Limited has acquired the website and assets of United States (US)-based K1 Edtech SaaS company.

The Denver-located edtech company provides monthly curated K-1 resources and live online professional development sessions for K1 teachers in the US. The acquisition, being financed by EduFocal – which raised just under J$130 million from its successful IPO earlier this month – will be immediately accretive to earnings.

Gordon Swaby, chief executive officer of EduFocal, commented that “acquisitions and new markets are high on our agenda as a primary driver of top and bottom line growth”.

He added: “The acquisition of Clever School Teacher [for example] gives us immediate presence in the USA on day one, access to hard currency and to opportunities at the often overlooked early childhood level, both in Jamaica, the region and obviously the USA.”

Marc Gayle, the lead consultant who drove the deal, said that “CST demonstrates the vast surface area of opportunities for EduFocal. Education has many niches including teachers, not just students. Teachers need resources for lesson planning.”

New subsidiary formed

The transaction was structured through a new subsidiary, with Ramsay & Partners Attorneys-at-law advising. 

Said Swaby: “We are looking forward to growing an already very profitable company even more in the short term, which will benefit our shareholders and a fast-growing number of international users.”

The Gordon Swaby-founded and led company got subscription above the just under J$130 million, which was sought through the IPO of 129,689,219 ordinary shares, priced at J$1 per share.

The general public, however, only got to buy 80,499,272 million shares, which represented 62 per cent of the IPO, which was allocated in the non-reserved pool of shares.

The remaining portion was listed in the reserved pool comprising 35,947,717 million shares or 28 per cent of the IPO went to key strategic partners. The balance of 13,242,230 or 10 per cent of the IPO went to Roots Financial Group Limited as the lender’s option.